Publications

- December 1, 2022: Vol. 14, Number 11

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Capital-light: Australian fund managers target investment models with greater capital efficiency

by Dinesh Pillutla

Listed property fund managers in Australia have delivered exceptional growth during the past five years in assets under management. Despite the impact of COVID-19, overall AUM has more than doubled since 2017, with growth coming mainly from “capital-light” fund managers. By having a capital-efficient model, strong and recognised asset managers can grow their platforms significantly for the benefit of their investors.

Australia’s two largest listed property fund managers are Goodman Group and Charter Hall Group. Goodman has delivered its growth in the industrial sector and is one of only a few Australian property fund managers that has been able to grow successfully on a global basis. This compares with Charter Hall, which is largely known for its experience in the Australian market on a diversified basis.

In October 2022, the Australian wholesale unlisted property market has also closed a significant chapter, with the property and infrastructure business of AMP C

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