Investing in long-term success

Australia is a compelling destination for investment, supported by a strong ecosystem capable of deploying diverse forms of capital. Australia’s growing population, rising living standards and economic expansion have driven increased demand for capital.

Our investment ecosystem includes high-quality domestic and global fund managers, well capitalised banks, and an active stock exchange - the world’s 16th largest by market capitalisation. With such established fundamentals, it is unsurprising that Australia is the world’s 14th largest economy. Over the past four decades, Australia’s pension pool has grown into the world’s 5th largest, and Australia is one of only nine countries rated ‘AAA’ by all three major agencies. Its proximity to Asia, extensive regional trade links, and a pipeline of more than 67,000 private companies further reinforces Australia’s attractiveness to private capital investors.

The report Australian Private Capital: Investing in long-term success covers Australia’s strengths and opportunities as a destination for private equity and venture capital investors.

Read the report

Resilient economic growth over the long-term

Since 1991, Australia’s economy has expanded more rapidly than any other developed country, with real GDP growing to nearly 2.7 times its 1991 size. This sustained performance reflects Australia’s economic strength, political and regulatory stability, and ability to adapt to global shocks through diversified trade relationships, flexible labour markets, and consistent investment in key industries.

Supportive investment vehicles

To encourage investment in start-up and growth businesses, the Early-Stage Venture Capital Limited Partnership (ESVCLP) and Venture Capital Limited Partnership (VCLP) provide tax incentives. Tax incentives include:

• Flow-through tax treatment
• Exemption for foreign limited partners from income tax on capital and revenue profits from the disposal of eligible investments (and, for ESVCLPs, for any other income from these investments)
• Fund managers’ carried interest is taxed as capital rather than income.

Significant superannuation pool

Australia has one of the world’s highest levels of superannuation coverage of its population. Nearly 80 per cent of the population is covered by superannuation. The pooled value of superannuation funds under management has increased to over $4.1 trillion, 1.5 times Australia’s GDP.

Long-term outperformance

Private markets have continued to deploy capital into Australian companies and distribute capital back to investors. Over the ten years to 31 March 2025 PE and VC combined had a net annual return of 15 per cent, outperforming most other private markets. Australian private capital has consistently outperformed Australian public markets. The graph adjacent shows data up to and including Q1 2025.