Former GESB Super Chief Ben Palmer Launches Affinity Funds Management in Western Australia
Ben Palmer, the former head of the $47 billion State Government superannuation authority GESB, is launching a new fund management business aimed at boosting Western Australia's economic diversification. In a strategic move, Palmer will collaborate with Adam Santa Maria, chair of Affinity Capital Group, to establish Affinity Funds Management, an investment arm designed to address what Palmer describes as a "little under-served" local market.
Addressing a Gap in WA's Fund Management Landscape
Despite Western Australia's substantial wealth, particularly from family offices ready to deploy significant capital, the region faces a notable shortage of fund managers. While firms like Packer & Co, Euroz, and Viburnum are prominent on the west coast, Palmer believes there is ample room for growth. He remains optimistic about WA's opportunities, even after over two decades of robust economic expansion.
"The investment pipeline here in WA will be really attractive to an institutional market," Palmer told The West Australian. "They are seeking long duration, stable cash flow, unlisted investments that also deliver economic and community benefits."
Target Sectors and Strategic Focus
Affinity Funds Management will concentrate on key areas vital to WA's future, including:
- The energy transition
- Critical minerals
- Agribusiness
- Infrastructure
- Water management
The company's capital arm already holds mandates for 5 gigawatts of green energy projects and major water initiatives, positioning it as a significant player in sustainable development.
Navigating Global Economic Challenges
Palmer's venture comes at a precarious time for the global economy and investors. With ongoing conflicts in the Middle East and Australia grappling with resurgent inflation leading to consecutive interest rate hikes, the environment is fraught with uncertainty. Palmer acknowledged that rising oil prices, elevated inflation, and interest rate increases could "put a crimp on demand and activity."
However, drawing on his nearly eight years of experience managing retirement funds for WA's public sector workers, Palmer expressed confidence in the State's resilience. He noted that current geopolitical tensions "emphasise the need for sovereign capability" and highlighted that "volatility is back with a vengeance."
This volatility was underscored recently by Australian Securities Exchange data showing that futures contracts traded in March nearly doubled compared to February, reflecting heightened market fluctuations.
A Milestone Appointment and Future Outlook
Adam Santa Maria praised Palmer's appointment as a significant milestone for Affinity. "Mr Palmer brings an exceptional track record, unmatched depth of institutional investment experience, and importantly, a genuine personal commitment to the values that underpin everything we do at Affinity," he stated.
As Affinity Funds Management gears up to channel investments into WA's key sectors, it aims to not only drive economic growth but also foster community benefits, leveraging Palmer's expertise to navigate the complexities of today's investment landscape.
