Australia’s $1 Trillion Market Draws UK Fund Manager Coller

In the ever-evolving landscape of global finance, one trend stands out: the relentless pursuit of wealth by high-net-worth individuals. Australia, with its robust economy and resilient equity markets, has become a magnet for international investors. The latest entrant to this lucrative market is Coller Capital, a UK-based fund manager specializing in private market secondaries. The firm’s expansion into Australia is a strategic move that aligns perfectly with the country’s growing high-net-worth wealth and the increasing demand for private investment vehicles.



Coller Capital’s entry into the Australian market is timely. According to new research from Capgemini, high-net-worth wealth in Australia grew by 7.9% in 2023, reaching a record US$1.05 trillion. This growth is well above the global average of 4.7% and has positioned Australia as the third-highest growing wealth market globally, behind India and Italy. The number of high-net-worth individuals (HNWIs) in Australia has also increased, with 333,000 people now fitting the bill, up 7.8% from 2023. Capgemini defines HNWIs as having 'investable assets of USD1 million or more, excluding their primary residence, collectibles, consumables, and consumer durables.'

Coller Capital’s launch of several funds targeting wealthy locals, including the Coller Private Capital Secondaries Fund and the Coller Private Equity Secondaries Fund, is a strategic move to capitalize on this growing wealth. These funds are designed to offer high returns in a period of elevated interest rates, with the Coller Private Capital Secondaries Fund targeting net returns of between 9% to 11%, and the Coller Private Equity Secondaries Fund offering 13% to 15% after fees. The minimum investment amount for each fund is A$25,000 ($15,718), making them accessible to a broad range of high-net-worth investors.

The Australian investment market is also characterized by a strong demand for private investment vehicles, with firms like Ares Management Corp., Brookfield Oaktree Wealth Solutions, and Nuveen LLC launching similar products. This trend is driven by the desire of wealthy individuals to diversify their investment portfolios away from the public space and hedge against a possible stock market slump. Coller Capital's entry into this market with its private credit funds, which have around 3,500 loans, further positions the firm to benefit from this trend. As David Hallifax, head of Australia and New Zealand private wealth distribution, noted, "So if one of the loans was to be distressed, it’s not going to have really any bearing on the end investor’s return profile."

Coller Capital’s expansion into Australia is part of a broader strategy to grow in the Asia-Pacific region. The firm recently hired Pak-Seng Lai from Blue Owl Capital to head up its Asia Pacific wealth team in Hong Kong and established a Singapore office. This regional expansion allows Coller Capital to tap into the growing wealth in Asia and provide tailored solutions to local investors.

The firm’s strategic advantages in targeting Australian investors are manifold. Firstly, it gains access to a large and growing wealth market. Secondly, it offers diversification opportunities for investors keen to move away from public markets. Thirdly, it capitalizes on the growing demand for private investment vehicles. Lastly, it aligns with its broader global investment strategy as outlined in its Global Private Capital Barometer.

In summary, Coller Capital’s expansion into Australia is a well-calculated move that leverages the country’s growing high-net-worth wealth and the demand for private investment vehicles. The firm’s strategic launch of funds targeting wealthy locals and its focus on private credit funds position it to capitalize on these trends and offer attractive investment opportunities to Australian investors. As the global financial landscape continues to evolve, Coller Capital’s entry into the Australian market is a testament to its forward-thinking approach and commitment to providing innovative investment solutions.