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Laxman Pai, Opalesque Asia:

Australia-focused private capital assets under management (AUM) stood at a record high of A$90bn ($65bn) as of June 2021, up 11% on December 2020's A$81bn, despite stringent lockdowns and pandemic-related challenges, said a study.

Private debt was by far the fastest-growing asset class, expanding 144% from December 2020 to an AUM of A$1.4bn in June 2021, albeit from a low base of just 2% of private capital AUM, according to Australian Private Capital Market Overview: Preqin & Australian Investment Council's Yearbook 2022, jointly produced by the Australian Investment Council (AIC) and Preqin.

"Private capital continued to find new investment opportunities despite the disruption caused by border closures and the extended impact of the COVID-19 pandemic," said Australian Investment Council Interim CEO, Jonathan Kelly.

"Private debt managers are an increasingly important source of funds for small to mid-sized Australian companies, as the commercial banks impose tighter lending conditions in response to regulatory pressures. Businesses are also responding to the commercial approach and flexible debt packages offered by the private debt segment, which increases the capacity to invest in growth initiatives," Jonathan added.

The report revealed that private equity (PE) and venture capital (VC) which account for half of the private capital AUM saw high deal volumes in 2021.

The aggregate value of PE deals reached A$20.1 billion, 20 pe......................

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