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Directions in Private Equity 2018

2 mins  26.11.2018
Welcome to the fourth edition of our Directions in Private Equity report, part of our annual Deals Trilogy.

Here, we provide our observations of trends in Australian private equity in FY18 and our predictions for FY19.

As entire industries are facing technology disruption and changing consumer behaviour, managers with specific technology and consumer related skill-sets are in more demand. Australian private equity funds are still paying reasonably modest multiples by global standards and we are still seeing a high volume of deal opportunities and good levels of capital deployment.

We're seeing some important trends:

  • Australian food, beverage and agribusiness assets continue to enjoy a strong global reputation and demand, with packaged food and meats accounting for the majority of private equity activity in the sector.
  • Private equity funds continued to look for ‘buy and build’ opportunities in FY18, looking to acquire businesses below their ideal ‘equity cheque’ size, but suitable for thematic investment in fragmented sectors such as travel and tourism, child care, food and agribusiness.
  • PE funds may see opportunities from royal commissions - major financial institutions may look to divest non-core assets due to diminished risk appetites and renewed focus on their core business, and the aged care sector may look to consolidate and partner with incumbents needing capital to meet rising social expectations about the quality of aged care.

Sectors to watch

Private equity

Non-bank financial services

Private equity

Operating infrastructure

Private equity

IT services

Private equity

Small-mid cap listed companies

Our report also addresses key fundraising themes, including what to look out for in FY19, acquisition finance trends and hot tax topics.

Download the full report

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