of private equity firm respondents plan to increase or make new investments over the next one to two years
Australia’s private equity market remains active, but creating and realising value is becoming more complex.
BDO’s inaugural Private Equity Survey explores how private equity firms and portfolio company leaders are responding to economic uncertainty, heightened competition, more selective exit markets and increasing pressure to deliver operational performance.
Drawing on the perspectives of 105 private equity and portfolio company leaders across Australia, the report examines how investors are adapting their capital deployment strategies, strengthening diligence, supporting portfolio companies and preparing assets for exit.
Hear from Private Equity National Leader, Greg Ellis.
Investment appetite remains strong, but firms are applying greater discipline to where they deploy capital and how they create value. All surveyed private equity firms plan to increase or make new investments over the next one to two years, while 98 per cent are adjusting investment decisions in response to current economic conditions. Our report delves into the value creation strategies investors are increasingly utilising to maximise returns on their assets amid volatile macroeconomic conditions.
It explores how value creation is embedded at each stage of the deal lifecycle, from investment decision making, to diligence before a deal is signed, and how it remains a priority from ownership through to exit. Discover how private equity firms and portfolio companies are approaching the challenges and opportunities to create, protect and realise value in a challenging market.
The deal lifecycle · Stage 1 of 4
How economic conditions are shaping investment decisions and shifting a deeper focus on value creation pathways.
of private equity firm respondents plan to increase or make new investments over the next one to two years
are adjusting investment decisions in response to economic uncertainty
have increased the level of support they provide to portfolio companies
describe current exit conditions as challenging, with buyers becoming more selective and expecting a detailed value proposition
Private equity firms are continuing to pursue investment opportunities, but they are becoming more selective about where and how they deploy capital with 98 per cent adjusting investment decisions in response to macroeconomic conditions.
Acquiring new platform assets remains the leading strategic priority, identified by 62 per cent of respondents. At the same time, 68 per cent are increasing their focus on bolt-on acquisitions, reflecting a stronger emphasis on using existing sector knowledge, platforms and capabilities to support growth.
How investment decisions are changing due to economic uncertainty over the next one to two years
Competition for quality assets also remains elevated, with 64 per cent of respondents describing the current level of competition as high. This reinforces the need for robust investment theses, valuation discipline and clearly defined value creation pathways.
Value creation is increasingly being embedded across the M&A lifecycle, from early-stage diligence through to deal execution and Day 1 readiness. As a result, diligence is expanding beyond identifying financial, tax and legal risks, with investors placing greater emphasis on growth strategy, management capability, operational scalability, technology, cyber risk and organisational readiness.
Financial performance and quality of earnings remain the leading diligence priority, followed by the credibility of the target’s growth strategy and management capability. Financial, legal or regulatory, and technology and cyber issues also generate the highest levels of red flags during diligence.
Most common causes of delays in deal completion
Maintaining this focus after deal signing is equally important to protecting and accelerating value creation. 80 per cent of private equity firm respondents reported experiencing delays to deal completion, reinforcing the importance of coordinated completion planning, clearly defined accountability and operational Day 1 readiness.
Level of support from PE firms provided to portfolio companies
Private equity firms are taking a more active role in portfolio company performance. 72 per cent have increased the support provided to portfolio companies, particularly across growth initiatives, governance, operational efficiency and strategy.
Revenue growth, operating cost optimisation, AI and systems modernisation are among the most pursued value creation levers.
These findings point to an execution challenge rather than a lack of strategic opportunity. The ability to bring together the right leadership, specialist capability and operating discipline is more important than ever for achieving measurable outcomes.
More selective exit markets are increasing the importance of exit readiness. Buyers are applying greater scrutiny to earnings quality, operational resilience, growth assumptions and the sustainability of value creation under new ownership.
68 per cent of private equity firm respondents identified evidencing operational performance through robust key performance indicators as a leading area requiring support when preparing a portfolio company for exit. Sharpening the equity story and aligning value drivers with buyer priorities was identified by 62 per cent.
Top areas requiring most support to effectively prepare a portfolio company for exit
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Building the equity story early, documenting the value creation journey and maintaining readiness for changing market conditions strengthens the value proposition, reduces buyer uncertainty and ensures exit readiness when conditions become ideal.
Explore how Australian private equity firms and portfolio companies are responding to changing investment, operating and exit conditions.
The report provides data-led insights and practical considerations across the full investment lifecycle, from capital deployment and diligence through to portfolio transformation and exit readiness.
BDO commissioned YouGov to survey 105 private equity and portfolio company leaders across Australia between 9 and 11 June 2026 in an online survey. The research included:
Participating private equity firms employed five or more people, generated annual revenue exceeding $1 million and managed at least $50 million in assets under management. Private equity-backed portfolio company respondents represented a range of industries, including financial services, manufacturing and logistics, healthcare, consumer and retail, technology and managed services.
This report brings together insights from specialists across private equity, deal advisory, economics, digital transformation, people advisory and mergers and acquisitions.
Greg Ellis
Patrick Burke
Martin Linhart
Kapil Kumar
Raoul Cernaz
Anders Magnusson
Julianne Kennedy
Nick Kervin
Tony Schiavello
Whether you are assessing a new investment, undertaking diligence, accelerating portfolio company performance or preparing an asset for exit, BDO’s private equity specialists can support you across the investment lifecycle.
Our multidisciplinary teams bring together deal advisory, tax, audit, digital, people, operational and risk expertise to help private equity firms and portfolio companies make informed investment decisions, strengthen performance and build sustainable value.