Australian pension fund CareSuper is planning to increase its investment team by up to a third as it expands internal asset management capabilities and adjusts its private markets exposure amid higher borrowing costs and market volatility, according to a report by Bloomberg.

The AUD$65bn pension fund expects to recruit as many as 20 investment professionals over the next 12 to 18 months, adding to its existing 60-person team. The appointments will cover public and private markets, portfolio construction and active asset allocation across its Sydney and Melbourne offices.

CareSuper is also reducing its exposure to domestic private credit manager Metrics Credit Partners in favour of global private credit opportunities. The fund currently allocates approximately 8% of its balanced portfolio to credit and 12% to infrastructure, and intends to retain a hybrid investment model combining internal management with external mandates.

The pension fund is also reportedly holding back new commitments to existing data centre investments amid concerns over valuations and the outlook for the sector. CareSuper, which has exposure through specialist digital infrastructure manager DigitalBridge, believes the risks associated with further investment have increased as scrutiny of AI-related infrastructure valuations intensifies.