Private Equity Value Creation Report: Australia 2025

INTRODUCTION

The PE industry in Australia began 2025 with a cautious yet hopeful outlook. After 13 consecutive interest rate hikes, recent rate cuts have breathed new life into market sentiment. Trading conditions are also gradually stabilising, as businesses emerge from the shadows of the pandemic, global supply chain shocks and international trade turbulence.

Yet, unlike the globally driven strategies seen in Europe and the U.S., Australian PE investments are largely rooted in domestic markets. While this focus may have offered some insulation from recent external shocks such as new U.S. tariffs, it has also likely contributed to a slow recovery in deal activity through 2024 and into the first half of this year.