Building resilience and reach: How Australian private equity firms can lead the next wave of growth
Building resilience and reach: How Australian private equity firms can lead the next wave of growth
Australia’s private equity (PE) market is evolving rapidly, attracting global capital and attention for its entrepreneurial spirit, robust legal frameworks and growing economic potential. With increasing interest from international funds and a maturing local ecosystem, the sector is poised to play a pivotal role in shaping the future of Australian business.
We expect the Australian private equity market to continue to grow, and in this environment PE firms will increasingly seek ways to differentiate themselves from the competition. This in turn will present greater options for founders and business owners when it comes to selecting a growth partner that is best aligned with their ambitions and one that can add real value beyond just capital.
A market poised for global relevance
Australia’s PE sector may be younger than its United Kingdom (UK) and United States (US) counterparts, but it’s quickly gaining ground. The sophistication and ambition of local PE professionals mirror those in more mature markets. With a strong legal and accounting framework, Australia offers a stable and transparent environment for investment, making it an attractive destination for global funds.
The country’s proximity to Asia-Pacific, combined with a growing population and economy, creates a fertile ground for PE activity. These factors position Australia as a regional leader in private equity, with the potential to drive growth both locally and abroad.
Differentiation through strategy and structure
As competition intensifies and capital flows increase, PE firms must find ways to stand out. Three key strategies are emerging:
- Multi-fund layering: Firms are adopting multi-fund strategies, often with flagship funds targeting upper mid-market deals and secondary funds focused on lower mid-market opportunities. Some are also branching into venture capital, particularly in business-to-business (B2B) software, to capture early-stage growth
- Sector specialisation: Funds are being raised to target specific sectors, such as healthcare and technology. This vertical focus allows firms to build deep expertise and deliver tailored value to portfolio companies
- Capital export: Australian PE firms are beginning to look beyond domestic borders, exploring opportunities to deploy capital and expertise in overseas markets. This global mindset is essential for long-term growth and relevance.
Jamie Austin, BDO's Global Private Equity Leader, noted:
Looking forward, I think you can expect to see more PE firms adopting a multi-fund strategy and increasing levels of sector specialisation. In addition, as local competition increases, I think PE firms will also start to explore how best to export both their capital and expertise more widely across the Asia Pac region.
The key to success: Innovate and connect
Innovation remains the cornerstone of success in private equity. Firms that continuously evolve their strategies, learn from global peers and adapt proven models are best positioned to thrive. Exporting expertise and embracing global connectivity are critical steps in building resilient and scalable businesses.
Let BDO help you capitalise on growth opportunities
The message is simple—private equity is not just about transactions. It’s about building long-term relationships, delivering value across the investment lifecycle and helping businesses grow with purpose. With the right mindset and strategy, BDO is well-positioned to support the next wave of private equity success in Australia.
BDO’s global network can play a vital role in enabling success. With coverage in more than 160 countries and a deep understanding of the middle market, BDO helps PE firms navigate complex cross-border deals, access new markets and build resilient businesses. Our full range of services includes both fund level services, such as deal advisory, structuring and compliance support, and services to PE portfolio company, including value creation, compliance and sell-side support.
Whether you’re buying, selling or growing a business, our national private equity experts provide a holistic support at every stage of the process. Reach out today to learn how we can help.
