Private Equity in Australia - Industry Market Research Report

Sound investment: Industry operators have benefited from a record-low interest rate environment

Private equity firms have benefited from record low interest rates for most of the past five years, which have allowed for cheap financing and increased buyout activity. Accordingly, PE firms have been able to expand their portfolios extensively. Private equities allure to investors as an alternative class used to diversify portfolios has benefited fund popularity. Yet, competition from sophisticated and sizable foreign PE firms has limited the performance of domestic firms. Industry revenue is expected to grow at an annualised 2.3% over the five years through 2022-23, to $560.1 million. Asset growth, which can be a more reliable measure of private equity growth, has risen at an annualised 7.8% over the same period.

Private equity firms manage investments in private companies. They may invest their own capital, raise funds from external investors to invest on their behalf, or do both. Investments can include venture and growth capital for emerging companies, as well as buyouts, which involves purchasing a publicly traded company to take it private. Firms earn revenue from external capital management fees and from any gains made on their own investments.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.