Private Equity - Australia & Oceania

The deal value in the Private Equity market is projected to reach US$12.09bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 1.62% resulting in a projected total amount of US$12.28bn by 2025.
The average size per deal in the Private Equity market amounts to US$48.98m in 2024.
From a global comparison perspective it is shown that the highest deal value is reached United States (US$594.00bn in 2024).
In the Private Equity market, the number of deals is expected to amount to 267.50 by 2025.

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

The Private Equity market in Australia and Oceania is experiencing subdued growth, influenced by cautious investor sentiment, regulatory challenges, and competition for quality assets, which collectively impact the pace of investment in this sector.

Customer preferences: Investors in the Private Equity market in Australia and Oceania are demonstrating a growing interest in sustainable and socially responsible investments, reflecting a shift in consumer preferences toward environmentally conscious practices. This trend is fueled by a younger demographic that prioritizes ethical considerations in their investment choices. Additionally, the rise of technology-focused startups has prompted private equity firms to adapt their strategies, focusing on sectors like fintech and clean energy that resonate with evolving lifestyle factors and cultural values.

Trends in the market: In Australia and Oceania, the Private Equity market is increasingly focused on sustainable and socially responsible investments, with firms actively seeking opportunities that align with environmental, social, and governance (ESG) criteria. This shift is primarily driven by younger investors who prioritize ethical considerations in their portfolios. Concurrently, there is a notable rise in technology-driven startups, particularly in sectors like fintech and renewable energy, prompting private equity firms to refine their investment strategies. This evolution not only reflects changing cultural values but also presents significant implications for industry stakeholders, including an emphasis on transparency and accountability in investment practices.

Local special circumstances: In Australia and Oceania, the Private Equity market is shaped by unique geographical and cultural factors that set it apart from other regions. The vast natural resources and diverse ecosystems amplify the focus on sustainable investments, as firms recognize the importance of environmental stewardship. Additionally, the culturally rich Indigenous heritage influences a growing emphasis on socially responsible initiatives that respect local communities. Regulatory frameworks encouraging transparency and responsible investing also foster an environment where ESG criteria are prioritized, significantly impacting investment strategies and outcomes in this dynamic market.

Underlying macroeconomic factors: The Private Equity market in Australia and Oceania is significantly influenced by macroeconomic factors, particularly central bank policies and interest rates. As the Reserve Bank of Australia adjusts rates to manage inflation and economic growth, the cost of capital for private equity firms fluctuates, affecting deal-making and investment strategies. Low interest rates often spur increased borrowing, enabling firms to fund acquisitions and expand portfolios. Conversely, rising rates can dampen valuations and reduce liquidity, prompting firms to prioritize investments in resilient sectors. Additionally, global economic trends, including trade dynamics and commodity prices, further shape the landscape, influencing the attractiveness of certain investments within the region.

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 Financial 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.