Private capital playing a bigger role in Australia’s future
17 April, 2026
Australian Investment Council Private Capital Yearbook 2026 key findings:
- Australian private capital AUM near record levels of $161 billion
- Private equity and venture capital together account for $72 billion AUM, with $83 billion AUM across real estate, infrastructure and natural resources
- Australian funds outperformed globally, delivering a return of 12.7 per cent for investors, including both realised and unrealised returns
- Private equity saw $13.6 billion in deals across 147 transactions in 2025, with technology accounting for around one third
Australian private capital is at near record levels of assets under management, reaching $161 billion, Australian Investment Council’s Private Capital Yearbook 2026 shows.
“Our Yearbook reveals a structural shift in who is funding Australia’s future with private capital playing a more significant role, fuelling the growth of small and medium enterprises and world-class innovation,” Australian Investment Council CEO Navleen Prasad said.
The 2026 Yearbook, which draws on data from Preqin, a part of BlackRock, shows that private equity AUM sits at $51 billion, venture capital AUM at $21 billion, with the remainder in private credit, real estate, infrastructure and natural resources.
“There’s considerable headroom for growth with the right settings,” Ms Prasad said. “Australia’s macroeconomic stability, transparent regulation and relatively low leverage underpin its appeal as a lower-risk proxy for Asian exposure. Assets are viewed as high quality and competitively priced.”
The data contains a number of red flags in the global competition for capital, including the impact of rising interest rates, deregulation agendas abroad diverting investment from Australia, and foreign investment flowing back into China.
“We should be concerned about Australia’s regulatory direction of travel in this context, particularly the friction being created by our new merger regime, foreign investment screening process, and outdated tax structures in the venture space,” Ms Prasad said.
“Other countries are falling over backwards to court international capital, including our world-class superannuation pool. Presenting a Team Australia front is smart, but where are the much-needed reciprocal programs selling Australian opportunities to international investors?”
Fundraising resilient
The Yearbook shows Australian private markets participants raised $9 billion in fresh funds in the 12 months to 31 December 2025, up six per cent on the year prior.
In contrast, Asia Pacific region fundraising, excluding Australia, fell 45 per cent to $98 billion, while North American managers increased fundraising by 5 per cent to $1.27 trillion.
Venture capital fundraising returned to its long-term average of $1.3 billion across 13 funds in 2025.
Stable returns
On returns, Australian private capital markets outperformed North America, Europe, and Asia, with 2015-22 vintages delivering a median net internal rate of return of 12.7 per cent.
Private equity continued its stable performance, returning more money to investors than it has called up for nine of the past 10 years.
PE-backed deals totalled $13.6 billion across 147 transactions in 2025, a third of which were tech related.
The Yearbook shows Australia’s venture capital sector has matured into a capital-efficient engine, producing global leaders such as Canva, Atlassian, Afterpay and Eucalyptus.
While 2025 saw the fewest number of VC deals in nearly a decade, average deal size reached an all-time high of $18.8 million.
In private credit, the golden age during 2022-23 has moderated as bank competition returns, interest rates rise, and new entrants compress margins.
Despite this, the Yearbook shows strategic allocations continue to grow, with $5.4 billion AUM in closed-ended private credit funds, and a further $40 billion in net asset value (NAV) in open-ended funds.
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About Australian Investment Council
The Australian Investment Council is the national peak body for private capital, which contributes three per cent to national GDP, supports over 1,100 businesses and over 600,000 jobs. Our 210+ members span global and domestic private equity, venture capital, private credit, institutional investors, including superannuation funds, and the professional services firms that provide expertise to the industry. Our purpose is to enable private capital to invest in Australian ideas, businesses and communities.
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