Australia has several state-level managers that invest on behalf of government pools. In Queensland, QIC started as a statutory government-owned corporation (GOC) and is today a specialist manager in real assets, private capital, and liquid markets. We were delighted to speak with Mr. Ravi Sriskandarajah, the Executive Director for Client Solutions and Capital, about QIC’s background, portfolio, and future goals.
[GSWF] How was QIC born, and can you walk us through the journey since 1991?
[QIC] QIC was established by the Government of Queensland to provide independent management of its pension assets – a defined benefit pension fund, which is fully funded. Early on, we decided to manage asset classes like Australian Real Estate on our own and to bring in managers for other investments. In the early 2000s, the State Government allowed QIC to take on third-party clients that wanted to tap into our capabilities and be invested alongside the pension fund. In parallel, we established our fixed income program, an infrastructure equity business, and a global private equity business focused on lower mid-market growth opportunities. The latter was conceived as a fund of funds but has focused on co-investments since its inception. Lastly, in 2021, we set up a private debt business focused on infrastructure and corporate, asset-backed securities and real estate.
[GSWF] How much of your FuM comes from the Queensland government, and how much from the rest of its clients?
[QIC] We serve about 80 non-government clients including the large Australian superannuation funds, and Asian, European, and North American funds. Of our AUD 120 bn in funds, more than half comes from QLD related clients, and the rest from third-parties.
[GSWF] How does your investment strategy work across to your different clients, including state investments?
[QIC] QIC’s State Investments are managed by a separate team, who comes up with an asset allocation that is aligned to the risk-return profile of their 40 government clients. Some of the asset classes (notably, private markets) are invested by QIC, based on our internal capabilities, while the rest is managed by external fund managers. We pay annual dividends to the QLD government.
[GSWF] QIC’s overseas portfolio has grown to almost 40% of the total – what is your focus when investing out of Australia?
[QIC] We invest in Europe and North America through our infrastructure equity, infrastructure debt, and private equity capabilities.
[GSWF] What constitutes your ideal partner, and which regions are you focusing on today?
[QIC] There is no pressure from our shareholder for us to go out and chase new limited partners – so we can be selective about which institutional investors we work with. We tend to focus on developed markets, and we think carefully about our partners. In terms of co-investors, they can come for a single deal with us, or those LPs whose capital we manage and to those we offer deal-flow.
[GSWF] Can you shed a light on your Private Debt business, which was established in 2021?
[QIC] Private Debt is an area of focus for us. We offer investors exposure to diversified debt across infrastructure within the OECD – where our Australian heritage gives us a competitive advantage – and in corporate, asset-backed securities and real estate sectors in Australia and New Zealand. QIC Private Debt’s US$1bn (A$1.6bn) of assets under management and committed capital is split between Private Debt Infrastructure and Private Debt Australia, with offices in New York, London, Sydney and Brisbane.
[GSWF] Your headcount has stayed flat for the past 5 years. Are you expecting to grow and to open any other office?
[QIC] Our international growth has been very deliberate and focused, according to our competitive advantages in those jurisdictions. The size of our teams is driven by the opportunities we identify, and by the relationships and partners we would like to work with.
[GSWF] Personally, you have been at QIC for almost four years. How do you compare them with your previous stints at BMO and BlackRock, and what are your goals for the next 3-5 years?
[QIC] My role at QIC brings to investment management the best of the two worlds I worked in at BMO and BlackRock. It’s my first time working in a head office, and it’s wonderful to be back in Brisbane after many years. I enjoy building strong partnerships with both a limited partner in-house and outside LPs. I look forward in the years ahead to continuing to work in a dynamic environment alongside our clients, partners, and the outstanding team at QIC.
