SYDNEY: The Australian Government’s new $540 million Business Growth Fund,
supported by investment from ANZ, CBA, NAB, Westpac, HSBC and Macquarie
banks as well as the Government, will add further momentum to the
record-breaking growth seen over recent years within Australia’s $30
billion private capital investment sector, according to the Australian
Investment Council.
“There’s no question that small to medium-sized enterprises (SMEs) and
fast-growing early stage new business ventures are not only major employers
today, but they will increasingly become more central to productivity gains
and economic growth across Australia over the long-term,” said the
Council’s Chief Executive, Yasser El-Ansary.
“In 2018 alone, Australian private capital funds secured an impressive $6.6
billion in new funding commitments, which brings the amount of committed
capital available to be invested into high growth potential Australian
businesses to around $11 billion today.
“The professional business growth and strategic skills that come with
private capital investment often lead to expansions in the workforce of
businesses that attract investment, driven by growth in sales within
domestic and international markets, and greater levels of investment into
innovative market-leading research and development.
“There is a global shift underway right now which is evident in the
significant volume of new investment commitments being allocated into
private capital in developed economies across all economic regions. In
2019, more than $1.2 trillion in new capital has been moved into private
markets, which underscores the critically important role that investment
into high quality unlisted businesses will play in driving the next wave of
economic growth right around the world,” added Mr El-Ansary.
Australia’s $30 billion private capital investment industry manages funds
on behalf of sophisticated domestic and international investors including
superannuation and pension funds, sovereign wealth and endowment funds, as
well as family offices. More information about the level of funding within
Australia’s private capital investment sector can be found in the
Australian Investment Council / Preqin 2019 Yearbook, available on the
Council’s website click here.