QIC has unveiled a new private debt capability, to be led by the former global head of infrastructure debt at AMP Capital.
Andrew Jones has been appointed as the new division’s leader, taking the role of head of private debt from February.
Mr Jones will be responsible for managing a team that will originate, analyse and manage private debt, starting with infrastructure assets.
The initial focus of QIC’s private debt strategy will be to build a team to develop the infrastructure offering.
Mr Jones has worked in the industry for more than 30 years, most recently being global head of infrastructure debt at AMP Capital.
He was one of a number of executives who departed from AMP Capital last year, after sexual harassment allegations made against former chief executive Boe Pahari were aired.
QIC CEO Damien Frawley commented the firm’s new capability will meet demand from institutional investors in the current low-yield environment.
“We believe private debt is a structural solution for today’s institutional investors seeking access to a defensive income stream with a strong yield in this ‘lower for even longer’ environment,” Mr Frawley said.
“Global infrastructure debt plays to QIC’s strengths as an experienced real asset manager.”
He added private debt is forecast to have 72 per cent growth in assets under management from the current US$848 billion recorded last year, to US$1.4 trillion by 2025.
“Offering private debt capabilities will also act as a source of financial stimulus for the real asset sector – such as infrastructure and real estate – and corporates that are looking to rebuild in a post-COVID world,” Mr Frawley said.
The private debt segment is the first new real asset capability the Queensland state-owned fund manager has brought to market since offering infrastructure in 2006.
Mr Jones will report directly to Mr Frawley.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
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