Australia Private Equity Quarterly Update  

Private equity activity in Australia rebounded in 2025, supported by high levels of unallocated capital, renewed momentum in priority sectors such as, technology, business and financial services, and health care, and increasing investor appetite for larger, more complex transactions. 

In brief

• While the market continues to recalibrate, early signs of stabilisation are evident, albeit with an uneven recovery.
• Deal activity in H1 2025 remained muted amid uncertainty around US tariff policy and broader macro volatility. Momentum improved in H2, with Q3 and Q4 driving a pickup in deployment.
• This pattern reflects a shift toward fewer, higher-conviction deals as valuation expectations reset and financing conditions became more supportive.

Looking to 2026, growth in Australia’s private credit sector is expected to remain positive, albeit with an increasing focus on quality underwriting, governance, and risk management. Regulatory scrutiny is intensifying, with ASIC’s surveillance and thematic reviews stressing the importance of transparent valuation, conflict management, and robust disclosures to safeguard investor confidence as the asset class matures.