(Bloomberg) -- Coller Capital Ltd., a UK fund manager specializing in private market secondaries, is expanding in Australia with the launch of several funds targeting wealthy locals.

The firm, which manages $38 billion, has launched two secondary feeder funds — Coller Private Capital Secondaries Fund and Coller Private Equity Secondaries Fund, said David Hallifax, head of Australia and New Zealand private wealth distribution in an interview. Both products target Australian investors keen to diversify investment portfolios away from the public space, Hallifax added.

Coller joins a growing list of asset managers promoting private investment vehicles to wealthy individuals in Australia, a market that’s worth over $1 trillion, according to one estimate. Firms including Ares Management Corp., Brookfield Oaktree Wealth Solutions and Nuveen LLC have launched similar products as a hedge against a possible stock market slump. Such loans are able to offer high returns in a period of elevated interest rates.

Coller’s private credit funds have around 3,500 loans, said Hallifax. “So if one of the loans was to be distressed, it’s not going to have really any bearing on the end investor’s return profile,” he said.

The Coller Private Capital Secondaries Fund is targeting net returns of between 9% to 11%, while the Coller Private Equity Secondaries Fund is offering 13% to 15% after fees, said Hallifax.

The minimum investment amount for each fund is A$25,000 ($15,718) and they are distributed through Australian financial advisers, private banks and wealth managers, he said.

Coller is also growing in Asia, particularly in private wealth. The firm recently hired Pak-Seng Lai from Blue Owl Capital to head up its Asia Pacific wealth team in Hong Kong and established a Singapore office.

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