MELBOURNE, March 28, 2026, 04:16 AEDT
HESTA faced renewed scrutiny on March 27 after ABC revealed that Grow Inc—its administration provider—showed nearly A$45 million in liabilities, while assets stood at about A$24 million, according to its latest filings. This surfaced just days after HESTA announced chief operating officer Stephen Reilly’s planned June departure. Both issues are raising sharper concerns over whether one of Australia’s largest retirement funds can maintain smooth operations.
The timing is notable: HESTA, a heavyweight in Australia’s superannuation sector, is still dealing with the aftershocks of its 2025 transition to Grow. In December, APRA said the shift “caused direct harm to members” and revealed gaps in both governance and risk oversight. According to the regulator, HESTA manages around A$100 billion for about 1.1 million members. APRA
So the fund now faces the dual challenge of supplier risk and leadership transition. In January, HESTA picked up a minority stake in Grow, as reported by ABC and Investment Magazine. Then, on Feb. 9, Debby Blakey said she plans to leave her CEO post in the second half of 2026, wrapping up more than ten years at the helm.
ABC reported that auditors flagged “significant doubt” over Grow’s ability to stay afloat in each of its last three financial filings—a warning tied to the company’s capacity to survive without new backing. Afterward, the broadcaster issued a correction: Grow says it can meet its obligations as they come due, and ABC revised an earlier mention of insolvency. ABC News
But it’s not just HESTA in the picture. According to ABC, NGS Super—a fellow Grow client—extended a A$30 million debt facility to the administrator. Grow pulled down A$20 million from that in September. The company also runs admin for Vanguard Super Australia, ABC said.
Ryan Dufty, a financial services lawyer who previously led regulatory matters inside Vanguard’s U.S. internal audit team, told ABC his main concern was Grow’s reliance on “some form of financial support” from clients during its last two big onboardings. Over at the Association of Superannuation Funds of Australia, chief executive Mary Delahunty described administration as a “difficult and complex business” but emphasized that competition still plays a role. ABC News
HESTA stood by its decision. Speaking to ABC and Investment Magazine, the fund pointed to “external advice, due diligence” and a push for more modern tech. HESTA also noted it had tested Grow’s platform before, during Mercy Super’s merger with HESTA back in late 2022. ABC News
Reilly’s departure marks another high-level change. HESTA said on March 24 the executive, brought on board in 2015, handled digital technology, information security, insurance, and investment operations. He’s stepping down “to pursue external opportunities.” Investment Magazine counted him as the third C-suite exit in under a year, following Blakey and ex-chief risk officer Andrew Major. HESTA
Operational risks dominate the downside for HESTA. Should Grow require additional funding, or a contingency plan kick in, expenses might climb and APRA could tighten oversight. David Bell at the Conexus Institute flagged another issue to ABC: HESTA being both client and shareholder, which might spark conflicts if Grow’s direction clashes with what members need.
Right now, HESTA and the rest of the super sector don’t have a clear solution. The fund is still feeling the impact of that tough 2025 migration. Add a financially pressured supplier and two major vacancies in the same year—HESTA can’t really afford another misstep.
