Private Equity Perks Up Down Under

May 28 2014 | 11:25am ET

For the past six years, private-equity firms have shied away from Australia. But just five months into 2014, they’ve shaken off those doldrums and plunged back in.

Private-equity buyout activity totaled US$5.5 billion in Australia through May, according to Dealogic, making this year the biggest for such deals Down Under since 2006 already. And p.e. firms are set to blow by that year’s total, too, which was just over US$6 billion.

Firms are sitting on a good deal of dry powder, and many have recently raised new flagship or Asia-Pacific-focused funds. Australia is a popular venue for p.e. firms as one of the few countries in the region where full takeovers are permitted.

In addition, credit is cheaper now than it has been since the financial crisis, allowing p.e. firms to increase their leverage. And Australian stocks have soared over the past year, attracting initial public offerings that provide opportunities for p.e. firms.

“It’s very likely that in the coming 12 months or so we’ll continue to see a heightened level of deal activity,” Australian Private Equity & Venture Capital Association CEO Yasser El-Ansary said. “There are a range of industry sectors that have a strong outlook over the coming years—look, for example, at the level of deal activity in the healthcare and aged-care space.”


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR