TLDR:
- Australia’s private capital industry grew by 33% in 18 months, reaching A$139 billion.
- Private equity and venture capital assets also increased by 30% to A$65.5 billion.
Australia’s private capital industry saw significant growth, with assets under management reaching A$139 billion by June 2023, up 33% from 18 months prior. Private equity and venture capital assets also experienced a substantial increase, reaching A$65.5 billion. Despite more challenging market conditions, Australia’s VC sector remained resilient with 260 deals completed in 2023. Additionally, the emerging private debt industry showed strong signs of growth, with AUM standing at A$1.8 billion as of June 2023.
The report highlighted a shift towards more experienced fund managers, with a higher proportion of family offices actively investing in the private capital sector. Despite higher interest rates impacting margins, Australian private equity firms continued to show resilience. Australia’s alternative assets industry also continued to see opportunities in new technologies and infrastructure supporting the energy transition. The country’s leadership in ESG investing and regulatory certainty were noted as competitive advantages in attracting investment.
Both Preqin and the Australian Investment Council emphasized the industry’s long-term resilience and its contribution to Australia’s GDP. Moving forward, the challenge lies in maintaining efficient regulatory frameworks to support investment in startups and growth businesses, ultimately fostering a dynamic and future-proofed economy.
