Australian private capital: A remarkable year and promising outlook
After a challenging 18 months, private capital managers are getting back to work in Australia. On the deal front, firms are deploying more capital than ever before, with 2021 deal values hitting previously unseen levels as momentum continues to build.
The significant rise in deal flow comes against an improving economic backdrop. With its border reopening, and successful execution of vaccination programmes – economic growth is on the rebound. The stable macro picture is providing private capital dealmakers with clearer visibility on future earnings and improved asset valuations. Geopolitical events and uncertainties abroad further help to cement Australia’s position as an attractive market for future investment.
With private capital deals rebounding, it comes as no surprise that more than three quarters of the 100 respondents in this research plan to increase investment in Australia during the next year. Impressively, close to half see Australia as their first-choice investment destination in the Asia Pacific.
In this report we take an in-depth look into how private capital managers are positioning their firms strategically in the Australian market, focusing on what is driving their investment appetite and where they see the most exciting opportunities emerging.
Key highlights include:
- Top market: 42% of private investors say Australia is their top market when looking for opportunities in Asia Pacific
- Investment intentions: 77% say they will increase investments in Australia in the next 12-24 months
- Australian advantages: Valuations/returns and political/regulatory stability are Australia’s top advantages, according to respondents
- Fundraising: 41% expect the outlook for fundraising to remain positive in the year ahead
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