'Hasn’t been a barrier': Aware Super says regulation isn't deterring venture bets
Super funds like HESTA argue the performance test and fee disclosure requirements stifle venture investment. Aware Super says it has found ways to make it work.
Superannuation fund HESTA is calling for regulatory change to boost investment in venture capital, secondaries and startups — but Aware Super says it hasn't been an issue for its team.
Aware Super’s head of private equity, Jenny Newmarch, told Capital Brief the $200 billion fund invests in venture capital, including secondary investments, despite regulations such as RG97, which mandates fee disclosure requirements, and the prudential regulator’s performance test.
“We’re pretty confident that over the large majority of 10 year periods, VC will be accretive to our members relative to a buyout only portfolio. There will be some shorter time periods where VC doesn’t perform as well as buyout,” she said.
“But over 10 year periods, it’s, in our view, more likely than not to be a return enhancer, so the performance test hasn’t been a barrier.”
