Australia Private Equity Market

Australia Private Equity Market Size and Share:

The Australia private equity market size reached USD 22.0 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 48.5 Billion by 2033, exhibiting a growth rate (CAGR) of 8.20% during 2025-2033. The increasing demand for buyout funds, venture capital, and infrastructure investments, with key players expanding their portfolios, showing promising prospects across diverse sectors, including real estate and technology are expanding the Australia private equity market share.

Key Trends of Australia Private Equity Market:

Rising Investments in Venture Capital and Buyouts Driving Growth 

The Australia private equity market is witnessing an increase in venture capital and buyout investments, driven by increased interest in high-growth startups and established businesses with strong expansion potential. For instance, I Squared Capital, a worldwide infrastructure investment company, stated on March 30, 2025, that Rest, one of Australia's biggest profit-to-member superannuation funds, has committed USD 300 Million. About 2 million members are served by Rest, which manages about USD 59.52 Billion. This investment focuses on areas including digital infrastructure, transportation, and renewable energy with the goal of offering flexible financial solutions to vital infrastructure assets globally. Investors are focusing on technology-driven enterprises, fintech, healthcare, and renewable energy sectors, fueling the overall Australia private equity market growth. The growing availability of capital from institutional investors, superannuation funds, and family offices has further enhanced deal activity. Additionally, regulatory support and government-backed initiatives promoting innovation and entrepreneurship have made Australia a preferred destination for private equity investments. The strong performance of private equity-backed firms, with higher returns compared to public markets, is attracting more investors. As a result, the market is experiencing increased competition among firms seeking lucrative deals, leading to higher valuations and strategic acquisitions. 

Infrastructure and Real Estate Funds Gaining Traction Amid Economic Growth 

The market is experiencing significant growth in infrastructure and real estate investments, driven by strong economic expansion and urban development projects. For instance, on December 13, 2024, two industry superannuation-owned companies merged when premier Australian property funds manager ISPT joined worldwide private markets manager IFM Investors. In order to increase customer value and quicken growth strategies, this strategic integration attempts to bring together their skills, expertise, and experience. In addition to joining IFM's Global Strategy Team, Chris Chapple, the former CEO of ISPT, has been named IFM Investors' Global Head of Real Estate. Private equity firms are increasingly targeting large-scale infrastructure projects, including transportation, energy, and telecommunications, to capitalize on long-term returns. The real estate sector is also benefiting from strong demand for commercial and residential properties, supported by population growth and urbanization. Rising foreign direct investment and government-backed infrastructure initiatives have further boosted capital inflows. Additionally, the adoption of sustainable and ESG (Environmental, Social, and Governance) investment strategies is influencing private equity firms to prioritize eco-friendly real estate and infrastructure projects, which is positively impacting Australia private equity market outlook. With the Australian economy maintaining stability and offering attractive investment opportunities, private equity firms are expected to expand their portfolios in these sectors, contributing to sustained Australia private equity market growth.

Growing Focus on ESG-Aligned Investments

The Australia private equity market demand is increasing due to the rising emphasis on environmental, social, and governance (ESG) factors. Investors are placing more value on sustainability and responsible investing, compelling private equity firms to include ESG considerations in their investment strategies and portfolio management. This is not a purely ethical endeavor, as growing evidence suggests that ESG performance is directly linked to long-term financial returns and risk mitigation. Support from regulations and increased investor requests for transparency are helping companies choose businesses with clear ESG policies. Consequently, adopting ESG approaches is now considered important for setting private equity firms apart and boosting their success in Australia.

Outlook of Australia Private Equity Market:

Focus on Small and Mid-Cap Opportunities

In 2025, Australia's private equity (PE) market is demonstrating resilience despite global economic uncertainties. A key trend is the growing investor preference for small and mid-cap companies, which offer agility and growth potential in volatile conditions. These segments are regarded as more resilient to changing market conditions and regulations. As inflationary pressures subside and interest rates stabilize, PE companies are using dry powder to capture undervalued assets. This situation is conducive to active management and strategic deployment of capital, particularly in healthcare, technology, and renewable energy. The capacity to create alpha from operational enhancement and bolt-on acquisitions is emerging as a defining approach, presenting small and mid-cap investments as a pillar of PE portfolios in Australia.

Creative Exit Strategies and Secondary Market Growth

As IPO markets remain subdued, Australian PE firms are increasingly turning to innovative exit strategies. Partial sell-downs, backdoor listings, and secondary transactions are gaining traction as viable alternatives to traditional exits. Secondary deals, which now account for sponsor exits, are expected to grow further, driven by a maturing market and increased buyer interest. This shift is also prompting more proactive behavior from target companies, which are initiating contact with potential bidders. According to the Australia private equity market analysis, these creative approaches not only provide liquidity but also allow firms to optimize timing and valuation. The evolving exit landscape reflects a broader trend of flexibility and strategic planning, essential for navigating the complexities of the current investment climate.

ESG Integration and Regulatory Scrutiny Shape Deal-Making

Environmental, Social, and Governance (ESG) considerations are now central to private equity transactions in Australia. Investors and regulators both are demanding increased transparency and accountability, which is affecting deal structures and due diligence procedures. ESG measures are not just desirable, but they are vital to valuing and long-term success. At the same time, regulatory scrutiny is increasing, with the likes of ASIC becoming more interested in private deals and merger clearance changes. This double pressure is forcing PE firms to become more strategic, compliant, and socially responsible investment actors. Companies that incorporate ESG into their value creation strategies and manage regulatory complexities will be in a better position to raise capital and provide sustainable returns.

Australia Private Equity Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on fund type.

Fund Type Insights:

• Buyout
• Venture Capital (VCs)
• Real Estate
• Infrastructure
• Others

The report has provided a detailed breakup and analysis of the market based on the fund type. This includes buyout, venture capital (vcs), real estate, infrastructure, and others.

Regional Insights:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia

The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Australia Private Equity Market News:

• On December 11, 2024, Ares Management Corporation, a leading global alternative investment manager, has launched the Ares Private Markets Fund (AUT), an Australian-domiciled unit trust. This fund is designed to provide wholesale clients in Australia access to the Ares Private Markets Fund (APMF), a U.S.-registered management investment vehicle. APMF, managed by Ares' Wealth Management Solutions platform, is a private equity investment solution that primarily invests in North American and European private equity fund stakes.
• On March 31, 2025, NB Private Equity Partners announced the repurchase of its shares as part of its continuing share buyback program. Up to 10 million pounds' worth of shares will be repurchased, demonstrating the company's dedication to increasing shareholder value. The initiative supports the business's strategic goals to boost investment in important markets, such as Australia, and improve its financial standing.

Australia Private Equity Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia private equity market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australia private equity market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia private equity industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.