Deals down under: why private equity investors should look to the Australian mid-market
With strong competition and high prices in their home markets, many investors have been searching the world for investment opportunities. But not all regions are created equal for private equity investors who look for areas with effective government and legal systems, combined with environments supportive of technology development and innovation. Arguably the chief market condition is a strong economy.
With institutional investors reliant on private equity allocations to drive returns through a sustained low-yield environment, private equity markets are deploying record levels of dry powder at a record pace.
As countries come out of the COVID-19 public health crisis, governments’ abilities to keep their countries open for business have also been under close scrutiny. To find these favourable conditions, private capital investors are increasingly looking southwards to the land down under. In addition to ticking all these boxes, private capital investments in Australia have historically delivered robust returns at lower risk.