Schroders is shutting down its AUD100m ($63m) Australian private-debt business, citing increased competition in fundraising and sourcing investments, according to a report by Bloomberg citing CEO and Chief Investment Office Simon Doyle.
In a statement, Doyle explained that the Australian private debt market has become highly competitive, saying: “as we look to focus our business and build scale globally, we believe the efforts of our private assets team are better directed towards other areas.”
The Australian arm of the UK-based asset manager will continue to focus on direct real estate lending, alternative credit, asset-backed finance, and private equity.
Staff involved in the private debt operation, including Nicole Kidd, Head of Private Debt for Asia Pacific, and Tim Hallam, a Portfolio Manager, will remain with the firm.
Schroders also operates a separate joint venture in Australia with family office RF Group to provide real estate credit, which will not be impacted by the closure.
