QIC scores $550 million mandate from Rest

Alternative investment firm QIC’s Global Private Capital (GPC) division has bagged a $550 million private equity mandate from superannuation giant Rest.

The agreement followed lengthy discussions between the two groups on creating a private equity program fit for Rest’s diversification, return and risk management profile.

QIC chief executive, Damien Frawley, said that the agreement showed the demand for private equity products.

“Rest’s mandate with QIC Global Private Capital reflects ongoing institutional investor demand for partnering with experienced specialist investment teams offering differentiated access to private equity opportunities.”

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Marcus Simpson, QIC head of GPC, reinforced this, saying that private equities had treated investors well lately.

“Working with Rest is a significant development for our GPC investment team. As Australia’s superannuation pool continues to grow, we expect to see more interest from funds who, like Rest, are looking toward alternative investments, such as private equity, to deliver superior risk‐adjusted returns over the longer term,” he said.

“Private equity returns have been strong in recent years and we believe that investment models emphasising organic growth and operational improvement can continue to deliver returns consistent with client expectations.”

Rest had been a longstanding investor in the QIC Shopping Centre Fund prior to the mandate. The fund said that the relationship had already delivered “great results” for its members.

While QIC only announced the transaction yesterday, it was closed in February, this year.