Aussie sovereign wealth fund eyes distressed debt investments


Future Fund CEO Raphael Arndt said distressed debt had become an area of focus for managers, citing the need for lenders to offload some of their riskier investments. — Bloomberg

BRISBANE: Australia’s sovereign wealth fund has been adding distressed debt investments to its hefty private markets portfolio as it sees more potential deals across the global credit landscape.

“On the distressed side, there are some pockets of opportunity, particularly in real estate and some private equity,” said Future Fund chief executive officer Raphael Arndt, adding that the fund wasn’t seeing a broad underperformance in credit. “We have moved some money into some of those strategies.”

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