Private Equity - Australia | Statista Market Forecast

In Australia, the deal value in the Private Equity market is projected to reach US$10.51bn in 2025.
It is anticipated that this market will exhibit an annual growth rate (CAGR 2025-2025) of NaN%, leading to a projected total amount of US$10.51bn by 2025.
The average size per deal in the Australian Private Equity market is estimated to be US$42.08m in 2025.
A global comparison indicates that the highest deal value is achieved in United States, which stands at US$640.67bn in 2025.
Furthermore, in the Private Equity market in Australia, the number of deals is expected to reach 249.81 by 2025.
Australia's Private Equity market is witnessing increased interest in technology-focused investments, reflecting the nation's growing innovation ecosystem and demand for digital transformation.

Definition:

Private equity involves partnerships that buy, manage, and eventually sell companies. These firms manage funds for institutional and accredited investors, who commit significant capital for extended periods. Private equity funds can acquire entire private or public companies or participate in buyouts with other investors, but they typically avoid holding stakes in publicly traded companies. The Private Equity market encompasses a broad range of deal types that involve acquiring equity ownership in private companies. This market typically includes leveraged buyouts (LBOs), growth capital, Carve-outs, and other forms of equity investments that target mature businesses with the potential for operational improvements and value creation. The market presented here does not include Venture Capital investments. While both Private Equity and Venture Capital involve equity stakes in companies, Venture Capital specifically focuses on high-growth potential startups, while private equity firms invest in established companies with the aim of increasing the value of these companies before selling their investment after several years.

Additional information:

The market contains the following KPIs: the deal value, the number of deals, the average deal size as well as the assets under management (AUM). Key players in this market are companies such as Blackstone, The Carlyle Group, KKR, Goldman Sachs, General Atlantic, and Warburg Pincus.

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Leveraged Buyouts (LBOs)
Growth Capital
Carve-Outs
Distressed Buyouts
Secondary Buyouts

Venture Capital
Venture Debt
Traditional bank loans
Digital capital raising

Private equity worldwide

The Private Equity market in Australia is witnessing subdued growth, influenced by factors such as economic uncertainties, evolving regulatory landscapes, and heightened competition for quality investment opportunities, leading to cautious investor sentiment and strategic decision-making.

Customer preferences: The Private Equity market in Australia is increasingly adapting to a growing demand for sustainable and socially responsible investments, reflecting a broader consumer preference for ethical and impactful business practices. As younger generations prioritize environmental, social, and governance (ESG) criteria, private equity firms are adjusting their strategies to incorporate these values, seeking opportunities in sectors like clean technology and renewable energy. This trend is reshaping investment priorities, prompting a deeper focus on long-term value creation over short-term gains.

Trends in the market: In Australia, the Private Equity market is witnessing a significant shift towards sustainable investments, with firms increasingly prioritizing environmental, social, and governance (ESG) criteria in their portfolios. This trend is fueled by a rising demand from investors, particularly younger generations, who are more conscious of ethical business practices. As a result, private equity firms are actively targeting sectors like renewable energy and clean technology. This alignment with sustainability not only enhances long-term value creation but also positions firms favorably in a market that values social responsibility, impacting stakeholder relations and investment strategies.

Local special circumstances: In Australia, the Private Equity market is uniquely influenced by its vast geographical landscape and diverse natural resources, which drive investment towards sectors like renewable energy and agriculture. The country's strong regulatory framework supports sustainable practices, encouraging private equity firms to prioritize ESG criteria. Culturally, Australians value environmental stewardship and social equity, influencing investor preferences. Additionally, the rising awareness of climate change among the populace has amplified demand for ethical investments, shaping strategic decisions in private equity portfolios.

Underlying macroeconomic factors: The Private Equity market in Australia is significantly shaped by macroeconomic factors such as interest rates set by the central bank, national economic stability, and global economic conditions. Low interest rates can enhance access to capital, encouraging private equity firms to engage in leveraged buyouts and growth investments. Conversely, rising rates may tighten lending conditions, influencing investment strategies. Additionally, Australia's economic resilience allows for steady returns, making it an attractive destination for global investors. Fluctuations in commodity prices, driven by international demand, also impact the valuation of firms within sectors like resources and agriculture, further shaping investment decisions in the market.

Data coverage:

The figures are based on deal value, number of deals, the average size of each deal, and assets under management within the Private Equity market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, and publicly available databases. In addition, we use relevant key market indicators and data from country-specific associations, such as: GDP, total investment (% of GDP), household wealth (per Adult), high income (% of population), and number of high-net-worth individuals (HNWI). This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are total investment (% of GDP), household wealth (per Adult), number of high-income persons, and number of high-net-worth individuals (HNWI).

Additional notes:

The market is updated twice a year in case market dynamics change.

This report presents a comprehensive analysis and additional information on the Finance market, in a PDF format.

In the last decades, private equity has emerged as a dominant force in global finance, reshaping industries and driving economic growth worldwide. After the peak experienced in 2021, however, private equity activity slowed down in 2022 and 2023, due to multiple factors such as inflationary headwinds, rising interest rates, geopolitical unrest and general uncertainty. With an estimated value of nearly four trillion dollars, private equity dry capital - a term commonly used in the private equity world to refer to committed, but unallocated capital - reached unprecedented heights in 2023. A high level of this capital means that private equity firms have unspent cash reserves. Among the most influential private equity firms worldwide, the Blackstone Group is the largest in terms of funds raised.

Private Equity - Australia

Deal Value

Average Deal Size

Number of Deals

Assets Under Management (AUM)

Analyst Opinion

Methodology

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