(Bloomberg) -- Rest, one of Australia’s largest pension funds, has invested A$400 million ($270 million) in Metrics Credit Partners’ real estate private credit fund.
The allocation is part of Rest’s plan to diversify its private markets exposure and capitalize on favorable interest rates for non-bank lenders, it said in a statement last week. The A$85 billion fund disclosed the amount of the Metrics investment to Bloomberg News on Monday.
Pension funds including AustralianSuper, Australian Retirement Trust and Cbus have lifted their private credit exposure or are looking to allocate more. The country’s A$3.9 trillion industry has plowed into private markets in recent years as it seeks to invest record amounts of inflows.
Australian asset manager Metrics’ fund provides commercial property loans to residential and industrial projects. The firm is one of a growing number of international and domestic private credit lenders such as Qualitas Ltd. and Apollo Global Management.-backed MaxCap Group Pty that are filling a funding void left by banks who’ve been hit by tighter capital regulation.
Recent market entrant PGIM Inc. is raising a A$750 million Australian real estate debt fund, its first in the Asia region.
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