Private markets are managing near record levels of capital

Private capital is playing a more significant role in funding startups and growth businesses. Australian private capital assets under management (AUM) is at $161 billion, with private equity, venture capital and private credit together accounting for $77.9 billion.

Australian fundraising on the rise

Australian private markets are performing better than global counterparts with aggregate capital raised growing by six per cent in 2025 to $9 billion. In contrast, the Asia Pacific region, excluding Australia, fell 45 per cent to $98 billion.

Private equity keeps delivering

Dealmaking picks up

After several tough years, private equity deals rose in 2025, totalling $13.6 billion in deals across 147 transactions in 2025. Just over half were add-ons. 16 per cent were buyouts. Roughly a third were tech related.

A sector maturing

Australian VC has matured and is proving its strength, but there is still significant headroom for growth. Fundraising returned to its ten-year average of $1.3 billion.

Private credit sector evolving

Despite market jitters around private credit, the outlook for growth by major players remains bullish. This year saw $5.4 billion AUM in closed-ended private credit funds, and a further $40 billion in net asset value (NAV) in open-ended funds.