Aware Super bolsters UK presence with $10bn investment

Aware Super has announced a significant $10 billion commitment to its London office, building on its growth trajectory as a global institutional investor.

The fund reiterated its international expansion into the UK represents an integral step towards achieving its expected $250 billion in assets under management (AUM) by 2025–26.

Aware currently has $160 billion in AUM, with $17 billion invested across the UK and Europe.

The announcement came as its first international office in London officially opened this week. Aware initially built up a UK team of 15 staff, a combination of local hires and staff from Australia.

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The fund’s UK headquarters will focus on direct investment in real estate, infrastructure, and private equity, with an emphasis on the energy transition sector, affordable housing, innovation, life sciences, technology, and the digital infrastructure sector.

“We expect we’ll have 30–40 staff at the office within the next few years,” Damien Webb, head of international and deputy chief investment officer, told Super Review in August.

He also previously hinted at other global opportunities: “In coming years we’ll be examining the case for opening a North American office. It’s too early to suggest specifically where such an office could be.”

Earlier this month, Webb also met with the Lord Mayor of the City of London in the United Kingdom in the lead-up to the office’s opening and to discuss how UK pension funds could invest more in private markets.

Deanne Stewart, Aware chief executive, has now said: “We are thrilled to announce our commitment to the UK, one of the world’s most important and vibrant capital markets, with the opening of our first international office.

“Aware Super’s growth trajectory into the UK market will position us as an active, leading global institutional investor, well-positioned to deliver strong risk-adjusted returns and lower fees for our Australian members while also providing exciting opportunities for our employees and communities across the UK.”

She identified various ‘compelling factors’ in the fund’s decision to invest in the United Kingdom. This includes the Australia United Kingdom Free Trade Agreement, UK’s closely aligned culture, proximity to Europe and Northern America, and support from the Department of Trade and Business and the City of London.

Webb, who has now relocated to London, said the region will fuel Aware’s scale ambitions and diversify its portfolio.

“Our international expansion strategy is positioning us to operate across the largest and most attractive capital markets, to find the strongest investment opportunities and deliver strong longer-term returns and competitive fees for our members back in Australia,” he commented.