Stafford Capital secures $220m First Super mandate

Stafford Capital has announced that its Australian private equity co-investment program with First Super has been converted into an evergreen structure.

Stafford's original private equity program with First Super, which has been operating since 2010, has generated a net IRR in excess of 20% p.a. since inception.

Converting the private equity program into an evergreen structure allows proceeds received from exits to be reinvested into new co-investment opportunities.

Co-investments will be into small-to-medium sized Australian companies forecast to generate strong returns alongside co-investment partners, Stafford said.

"First Super is looking forward to continuing to support this important part of the Australian economy," First Super chief executive Bill Watson said.

"Our size means we can continue to invest our members' retirement savings in Australia, rather than in offshore private equity".

Stafford said it has worked closely with First Super for several years to develop a specialised ESG diligence framework that has been, and will continue to be, applied to the co-investment program.

Stafford Australian private equity lead Daniel Bowden said investing into private equity through a strong ESG lens had proven a successful investment theme for First Super.

"This strategy's strong focus on active management of ESG risks sets it apart within the private equity asset class, delivering strong benefits beyond the significant bottom line net returns," Bowden said.

"It is exciting that following several recent exits from First Super's original program, there is dry powder available to reinvest under the ESG private equity co-investment program."

Since the beginning of the year, Stafford's private equity team has now secured an aggregate of $340 million of new capital to invest into co-investment opportunities, both locally and globally.

The new mandate comes after Stafford appointed Stephen Milburn-Pyle as its new superannuation lead back in March.

Prior to joining Stafford, Milburn-Pyle was responsible for the strategic operational management of Australia Post Superannuation until its transfer into Australian Retirement Trust last year.