Future Fund

The Future Fund is Australia's sovereign wealth fund, established in 2006 to strengthen the Australian Government’s long-term financial position. Its primary mandate is to manage various public funds, including the Future Fund itself, the Medical Research Future Fund, and others, aiming to achieve strong, long-term returns. As of March 31, 2024, the Future Fund manages a substantial portfolio totaling approximately US$170 billion (A$256.7 billion), making it one of the largest sovereign wealth funds globally.

The fund employs a highly diversified, long-term investment strategy, allocating capital across a broad spectrum of asset classes worldwide. These include public equities, private equity, venture capital, property, infrastructure, credit, and alternative investments. Within the venture capital ecosystem, the Future Fund primarily operates as a Limited Partner (LP), committing significant capital to established venture capital and private equity funds rather than making direct, early-stage investments in startups. This approach allows them to gain exposure to innovative companies and growth sectors through experienced fund managers.

Since its inception in May 2006, the Future Fund has demonstrated robust performance, generating an average annual return of 7.8% as of March 31, 2024, exceeding its long-term target. Its investment decisions are guided by a sophisticated risk management framework and a commitment to sustainability. While the fund does not typically issue "first cheques" to individual startups, its typical commitments to private equity and venture capital funds, which constitute its primary engagement in the venture ecosystem, are substantial. These commitments generally range from tens of millions to hundreds of millions of US dollars per fund, reflecting its role as a major institutional investor seeking long-term growth and diversification for the Australian public.