AustralianSuper, the A$260 billion ($176.7 billion), Melbourne-based super fund, hired Churchill Asset Management to manage $250 million in a private credit separate account.
The account will invest in "traditional senior and unitranche loans," with the intention of growing that allocation "substantially over time," according to a joint news release Friday.
The news release said AustralianSuper has over $4.5 billion committed to private credit globally, or roughly 2.6% of its portfolio, with plans to triple that exposure in the coming years through a combination of direct lending by the fund's in-house private credit team and partnerships with specialist managers, such as Churchill.
Churchill, the private credit specialist affiliate of Nuveen, the asset management arm of TIAA, has $42 billion in committed capital, with roughly $9 billion of that total managed in separately managed accounts on behalf of external clients.
Ken Kencel, president and CEO of Churchill, in the news release said "we believe the opportunity in U.S. middle market senior lending continues to be very attractive … given the floating rate nature of the investments, strong current income potential, significant lender protections and senior position in the capital structure."
AustralianSuper said it expects its A$260 billion portfolio to more than double in size over the next five years.