In a recent conversation hosted by Giovanni Amodeo for the ION Influencers series, Chloe Brayne, Head of Private Equity and Unlisted Assets at Colonial First State (CFS), shared her insights on the evolving landscape of private markets. With a global career spanning infrastructure, superannuation, and investment strategy, Chloe offered a deep dive into how CFS is building a resilient, forward-looking private assets portfolio.

Chloe’s insights underscore the importance of strategic foresight, data fluency, and partnership-driven investing in navigating the complex world of private assets. As Colonial First State continues to expand its private markets footprint, Chloe’s leadership is shaping a portfolio built to endure—and excel—through change.

Chloe’s Role and Vision at CFS

• Mandate: Overseeing private equity, infrastructure, and property investments.
• Objective: Build a long-duration, high-return portfolio that withstands market volatility.
• Focus: Align investments with macro trends like digitization, demographics, and globalization.

 Key Themes Discussed

1. Strategic Portfolio Construction

• Emphasis on holistic portfolio design across asset classes.
• Importance of resilience and long-term value creation.
• Balancing direct investments with manager-led strategies.

2. Digitization and Data-Driven Investing

• AI and data centers are reshaping investment opportunities.
• CFS evaluates exposure at multiple levels:
  • Direct infrastructure (e.g., data centers)
  • Adjacent services (e.g., utilities)
  • Operational tech firms via private equity
• Data usage by portfolio companies is a key diligence factor.

3. Manager Selection and Partnerships

• Criteria include:
  • Track record beyond financials—strategy consistency, team stability, and succession planning.
  • Cultural alignment and long-term partnership potential.
  • Access to co-investment opportunities.
• Chloe values managers with deep domain expertise, especially in digital sectors.

4. Structuring for Success

• Portfolio structure is the foundation—risk profiles, diversification, and liquidity must align.
• Liquidity is not just for flexibility but for strategic repositioning during market shifts.

5. Understanding Member Needs

• Insights from superannuation benchmarks and retail investor behavior guide strategy.
• Focus on risk-adjusted returns and transparent communication with members.

6. Navigating Uncertainty

• Chloe emphasizes long-term thinking over short-term reactions.
• Diversification and thoughtful construction help mitigate volatility.
• The goal: a portfolio that thrives through cycles and structural changes.

7. Transparency in Private Markets

• While private markets differ from public ones in valuation frequency, Chloe argues they are not less transparent.
• Strong manager relationships and robust diligence ensure data-rich decision-making.

8. Democratization of Private Assets

• Australia is catching up to global trends in retail access to private markets.
• Growing demand is driving innovation in product offerings.

9. Top Picks: Infrastructure & Private Equity

• Infrastructure: Defensive, inflation-linked, and supported by global policy shifts.
• Private Equity: Current market uncertainty presents buying opportunities for agile investors.

Key timestamps:

00:07 Introduction to the Fireside Chat
01:18 Understanding Colonial First State’s Mandate
01:48 Trends in Private Assets
03:34 The Impact of Digitization on Investments
05:23 Direct vs. Indirect Investment Strategies
07:35 Manager Selection Process
09:41 Evaluating Track Records of Managers
12:46 Importance of Portfolio Structuring
13:56 Learning from Benchmark Performance
16:21 Navigating Uncertainty in Investment
18:21 Future of Data Transparency in Private Markets
20:21 The State of Private Asset Democratization in Australia
21:35 Investment Opportunities in Infrastructure
22:38 Navigating Uncertainty in Private Equity
23:22 Closing Remarks and Insights