Australia Private Equity Quarterly Update – Q1 2026 

Private equity activity in Australia proved resilient in Q1 2026, with a strong rebound in deal value masking a still‑cautious market. Concentrated capital deployment and shifting sector dynamics highlight a market defined by selectivity — not momentum.

In brief

• The Australian PE market entered 2026 with cautious optimism on deal flow and a pragmatic approach to value creation
• Uncertainty across global markets increased during the quarter following the escalation of conflict in the Middle East, contributing to higher energy prices, renewed inflation concerns, and tighter financial conditions
• Impact of Middle East conflict yet to fully flow through to Australian deal activity

Private equity (PE) activity in Australia demonstrated relative resilience in Q1 2026, particularly on a value basis, against a backdrop of subdued global dealmaking. Aggregate deal value increased 2.3x year‑on‑year, while deal volumes rose a more moderate 28%, indicating a market characterized by selective underwriting rather than broad‑based recovery. Australia accounted for ~20% of total APAC PE deal value, a sharp increase from ~7% in Q1 2025, underscoring its growing relevance as a capital deployment market within the region.

In Q1 2026, there were a total of 23 deals deploying over US$11.1b in capital. Deal value was heavily skewed, with a single mega‑deal (Macquarie’s acquisition of Qube Holdings for US$8.3b in the Infrastructure sector), accounting for approximately 75% of total quarterly value. There has been a shift in sector activity with 1Q26 seeing more activity in the financial (22% of volume) and industrial (17% of volume) sectors. Technology – which has historically represented c.30% of deal volume in Australia saw a decline in activity in 1Q26  (17% of volume), driven by the AI-driven reset in software valuations and mis-matches in seller and buyer expectations.