AustralianSuper CEO Ian Silk to Step Down

Ian Silk, CEO of Australia’s largest superannuation fund, AustralianSuper, will be stepping down after 15 years when his term ends later this year. The pension fund’s board of directors named Chief Risk Officer Paul Schroder as his successor.

AustralianSuper Chair Don Russell said Silk had been discussing his intention to leave the pension fund with the board over the past several months. Russell also said the search for Silk’s replacement included the board reviewing external candidates before unanimously deciding to promote Schroder from within the fund.

“It has been an amazing privilege to work with my colleagues across the fund,” Silk said in a statement. “I look back with huge pride on what the team at AustralianSuper has achieved.”

Russell praised Silk’s leadership, noting that over the past 15 years he helped the fund grow to more than A$225 billion (US$165.7 billion) in member assets under management (AUM) from A$21 billion. The fund’s membership also doubled during Silk’s tenure to more than 2.4 million members.

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“The AustralianSuper Board wishes to express our deep appreciation for the leadership and integrity that Ian has consistently displayed throughout his tenure and in building an organizational culture that always puts the long-term financial interest of members first,” Russell said. “Under Ian’s leadership, the fund has always been ambitious for members.”

Silk leaves on a high note as the pension fund earlier this month reported a 20.4% return for fiscal year 2021—the largest in AustralianSuper’s history. The fund has also earned annualized returns of 9.49% over the past 10 years, making it one of the top performing funds in the country.

As chief risk officer, Schroder is responsible for the fund’s relationships with regulators and its risk and compliance team. He was promoted to the position in 2019 from group executive strategy, brand and reputation, and led group executive membership prior to that. Before joining AustralianSuper, Schroder was the national secretary of the Finance Sector Union of Australia.

“Serving members and helping build their retirement balances is central to our purpose and ingrained in our culture,” Schroder said in a statement. “I look forward to working with my colleagues and key stakeholders to continue to deliver on that vision.”

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Tags: Australiansuper, Don Russell, Ian Silk, Paul Schroder, Pension Funds, Superannuation Funds

Private equity’s post-pandemic rally is continuing to pick up steam with record highs in fundraising, deal activity, and exits during the first half of the year, according to a report from Ernst & Young (EY).

Private equity (PE) firms already announced approximately $580 billion in new deals during the first six months of 2021, putting the industry on pace for its first-ever trillion-dollar year. That’s almost three times what firms reported during the first half of 2020, and it marks a 53% increase over the second half of last year.

According to EY, private equity activity has historically been measured against the “high-water mark” of 2006 to 2007, when PE firms collectively reported more than $750 billion in deals.

The robust start to 2021 can be attributed to the return of the “megadeal,” says EY, including the second-largest buyout in history when a consortium led by Blackstone, The Carlyle Group, and Hellman & Friedman acquired Illinois-based Medline Industries for $34 billion last month.

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There were seven so-called “megadeals” worth $10 billion or more, which is a record for a six-month period. EY attributed the increased dealmaking to rising certainty, continued low interest rates, and dry powder accumulation. The firm also said megadeals are reinvigorating collaborations between PE firms.

“The resilience of private equity was on full display in the first half of 2021,” Pete Witte, EY Global’s private equity lead analyst, wrote in a brief. “After weathering marked declines in deal volumes, fundraising, and exits in 2020, firms more than compensated with record levels of fundraising, deal activity, and exits.”

Witte added that “recovering macro conditions and the widespread availability of financing will provide strong tailwinds for PE as it enters the second half of 2021.”

That sentiment was echoed by a recent survey that showed private equity firms expect to see a wave of merger and acquisition (M&A) activity during the second half of the year, thanks to easing pandemic restrictions and fears that capital gains taxes will be increased. The high expectations come despite a less positive outlook for the US economy for the year. Only 47% of firms polled said they have a positive outlook for the economy in 2021, compared with 61% of firms who said the same thing in 2020.