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Laxman Pai, Opalesque Asia: Australia-focused private capital assets under management (AUM) reached a record $118bn AUM in the year to September 2022, while dry powder hit $37bn, said a study.
"Australia has set several private capital records over the past year as it's strengthened its position both as a target for international investors and as a source of capital for funds and deals around the world," said the Australian Private Capital Market Overview, published by Preqin and the Australian Investment Council (AIC).
The study pointed out that private equity and venture capital fundraising reached record highs in 2022 amid global macroeconomic headwinds. Last year, 13 private equity funds raised a total of $9bn, more than double 2021's $4.3bn across 22 funds. Meanwhile, 17 VC funds raised $2.7bn, up from $600mn in 2021 (nine funds).
Stronger merger and acquisition activity in private equity is leading to higher demand for credit facilities to back leveraged buyouts, contributing to the growth of Australia's private debt industry.
Preqin overview revealed that high-net-worth individuals, family offices, wealth managers, and corporate investors are also moving into private capital.
Real estate remains the largest asset class in Australia, although fundraising and deal activity significantly slowed in 2022. Meanwhile, natural resources and infrastructure are benefiting from higher food and commodities prices, as well as Australia's commitment to reach...................... To view our full article Click here
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