Private equity firm Phoenix Group ventures into Australian private debt market for the first time.
Phoenix Group Makes Strategic Entry into Australian Private Market with £75m Investment in Worley
Phoenix Group, the UK's largest long-term savings and retirement business, has made a significant move into the Australian private market with a £75 million private debt investment in Worley, an Australian global professional services company specializing in energy, chemicals, and resources (ECR).
The investment, which marks Phoenix Group’s first private market transaction in Australia, is a strategic expansion into the Asia-Pacific (APAC) region. Worley operates in 45 countries and plays a pivotal role in the energy transition, which aligns with Phoenix Group's sustainability goals.
Cecile Retaureau, head of private markets at Phoenix Group, stated that the transaction exemplifies what they look for in a private credit opportunity. Phoenix has been building its direct origination and execution platform in private debt, with 75% of executed transactions directly sourced in the past two years. The company has directly executed £1.5bn in private debt over the same period.
The deal is structured as a bespoke bilateral deal, providing long-term financing with tailored terms for Phoenix, offering attractive returns and prudent risk management. Worley's group treasurer, David Rowe, expresses delight in working with Phoenix on the bilateral transaction and securing long-term financing for Worley.
Phoenix views Australia as a compelling investment landscape for its private markets strategy, with opportunities in private credit, energy transition, and social and affordable housing. The investment is consistent with Worley's strategy of diversifying its global funding profile and building relationships with long-term strategic investment partners.
The deal highlights growing cross-border capital flows between the UK and Australia, bolstered by recent trade agreements such as the Australia-UK Free Trade Agreement and mutual interests in financing the energy transition and infrastructure projects. Retaureau highlights Australia's robust regulatory environment and strategic position in the APAC region as ideal for expanding Phoenix's portfolio.
In the first half of 2025, nearly £800m has been directly originated and executed by Phoenix, representing more than 90% of its private credit allocation year to date. This surge in the Australian private market is predicted to continue, making it an attractive destination for global investors like Phoenix Group.
The Australian Trade & Investment Commission welcomed the deal, noting it demonstrates Australia’s attractiveness and credibility as an investment destination in private markets. Worley's strong market position, diversified business model, and robust cash generation were key factors in Phoenix's decision to invest.
In conclusion, the Phoenix Group’s £75 million private debt investment in Worley represents a strategic entry into the Australian private market that supports sustainability-focused infrastructure growth while expanding Phoenix’s private credit footprint in the Asia-Pacific region.
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