Name: Spotlight on Australia: A hidden gem for private capital investments
Uploaded: 2024-10-04T08:29:47.053Z
Duration: 221.42

SRA_14 - Navleen Prasad V.2_1.mp4

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SRA_14 - Navleen Prasad V.2_1.vtt

ENGLISH

{{00:00:10}}
SRA_14 - Navleen Prasad V.2_1: Yeah,
so dry powder is that in Australia

{{00:00:12}}
is actually pretty well managed.

{{00:00:14}}
And if you have a look at current
levels of dry powder and just

{{00:00:16}}
referring to some recent frequent
data, it's currently back at around

{{00:00:19}}
pre pandemic levels or thereabouts.

{{00:00:22}}
So deal flow in Australia has been subdued
as it has been around much of the world.

{{00:00:26}}
But I think as you, as we start to
see deal activity come back again

{{00:00:30}}
particularly in that middle market
space, you'll see that there's

{{00:00:33}}
actually lots of opportunity available.

{{00:00:40}}
Look, Australia is a hidden gem,
particularly for international investors,

{{00:00:43}}
and I think for a lot of internationals,
it's a long way to come, and Australians

{{00:00:46}}
are very used to getting onto two
planes to get to anywhere, but for,

{{00:00:50}}
internationals, it does take a little
while to get your head around how far away

{{00:00:54}}
it is, but it's definitely worth the trip.

{{00:00:56}}
Australia's built on, has got some
very strong economic and market

{{00:00:59}}
fundamentals and macro fundamentals.

{{00:01:01}}
But for, and from a private
capital point of view there's a

{{00:01:04}}
lot of opportunity, particularly
in, for, in the middle market.

{{00:01:08}}
And for tech investors Australia
punches well above its weight.

{{00:01:12}}
The superannuation funds in Australia,
we've seen a lot of consolidation in

{{00:01:15}}
the industry over the last few years.

{{00:01:17}}
And what that's led to
is some very large funds.

{{00:01:20}}
That increasingly having to deploy
capital offshore in order to achieve

{{00:01:23}}
that portfolio diversification.

{{00:01:25}}
It has meant, and it's opened up
some opportunities, particularly in

{{00:01:28}}
private equity and venture capital.

{{00:01:30}}
The other factor that's involved
there is that there's some regulatory

{{00:01:34}}
constraints that, and for asset classes
like PE and VC, which are relatively

{{00:01:38}}
illiquid long term and, from a fee
point of view, quite expensive.

{{00:01:42}}
It's meant that there is a, an opportunity
for, international investors to step in.

{{00:01:47}}
So for international, smaller
pension funds, endowments family

{{00:01:51}}
offices, there's actually quite
a lot of opportunity, I think.

{{00:01:54}}
for them to come in and have
a good look at Australia.

{{00:02:01}}
One of the great things about
Australia's economy and for private

{{00:02:05}}
capital investment opportunities is
that it is an economy wide opportunity.

{{00:02:08}}
So Australia is relatively well known
internationally for mining and resources,

{{00:02:12}}
but actually when you look at share of
output from a gross value added basis,

{{00:02:16}}
business services occupies the top spot.

{{00:02:17}}
So what does that mean for PA and
VC investors is that there's a range

{{00:02:22}}
of opportunities, whether it's in
healthcare, the care economy, there's

{{00:02:25}}
some enormous capital requirements for
aged care, child care, disability care.

{{00:02:30}}
The energy transition presents a lot
of opportunity, particularly as Once

{{00:02:33}}
infrastructure investment starts to
step in and create opportunities,

{{00:02:36}}
whether it's in enabling technologies
or in creating like in local content

{{00:02:40}}
meeting local content requirements.

{{00:02:42}}
Australia has about 67, 000 privately
held companies with 20 employees or more.

{{00:02:46}}
That's probably a
surprisingly large number.

{{00:02:49}}
And not all of those opportunities are
going, not all those businesses are

{{00:02:51}}
going to be right for, private equity
or for venture capital investors.

{{00:02:54}}
But what you'll see in that population
are a lot of entrepreneurs now

{{00:02:58}}
starting to head towards retirement.

{{00:03:00}}
A lot of founder led businesses
that are looking for private capital

{{00:03:04}}
investment, either to satisfy some
growth objectives, or possibly to

{{00:03:08}}
provide some succession pathways.

{{00:03:10}}
And so I think we'll see quite a lot
of opportunities for deploying capital,

{{00:03:12}}
particularly in the middle market sector.

{{00:03:15}}
That's not to say that there aren't
opportunities in larger buyout I think

{{00:03:18}}
we'll see, particularly as deal flow
starts to return that in larger buyout

{{00:03:22}}
you'll see the possibility for corporate
carve outs you'll see a continuation of

{{00:03:27}}
the trend of public to private as well.

{{00:03:29}}
And I, would really encourage
investors to, take a, another look at

{{00:03:34}}
Australia and find that hidden gem.

SRA_14 - Navleen Prasad V.2_1: Yeah,
so dry powder is that in Australia

And if you have a look at current
levels of dry powder and just

referring to some recent frequent
data, it's currently back at around

So deal flow in Australia has been subdued
as it has been around much of the world.

But I think as you, as we start to
see deal activity come back again

particularly in that middle market
space, you'll see that there's

Look, Australia is a hidden gem,
particularly for international investors,

and I think for a lot of internationals,
it's a long way to come, and Australians

are very used to getting onto two
planes to get to anywhere, but for,

internationals, it does take a little
while to get your head around how far away

it is, but it's definitely worth the trip.

Australia's built on, has got some
very strong economic and market

But for, and from a private
capital point of view there's a

lot of opportunity, particularly
in, for, in the middle market.

And for tech investors Australia
punches well above its weight.

The superannuation funds in Australia,
we've seen a lot of consolidation in

And what that's led to
is some very large funds.

That increasingly having to deploy
capital offshore in order to achieve

It has meant, and it's opened up
some opportunities, particularly in

The other factor that's involved
there is that there's some regulatory

constraints that, and for asset classes
like PE and VC, which are relatively

illiquid long term and, from a fee
point of view, quite expensive.

It's meant that there is a, an opportunity
for, international investors to step in.

So for international, smaller
pension funds, endowments family

offices, there's actually quite
a lot of opportunity, I think.

for them to come in and have
a good look at Australia.

One of the great things about
Australia's economy and for private

capital investment opportunities is
that it is an economy wide opportunity.

So Australia is relatively well known
internationally for mining and resources,

but actually when you look at share of
output from a gross value added basis,

So what does that mean for PA and
VC investors is that there's a range

of opportunities, whether it's in
healthcare, the care economy, there's

some enormous capital requirements for
aged care, child care, disability care.

The energy transition presents a lot
of opportunity, particularly as Once

infrastructure investment starts to
step in and create opportunities,

whether it's in enabling technologies
or in creating like in local content

Australia has about 67, 000 privately
held companies with 20 employees or more.

That's probably a
surprisingly large number.

And not all of those opportunities are
going, not all those businesses are

going to be right for, private equity
or for venture capital investors.

But what you'll see in that population
are a lot of entrepreneurs now

A lot of founder led businesses
that are looking for private capital

investment, either to satisfy some
growth objectives, or possibly to

And so I think we'll see quite a lot
of opportunities for deploying capital,

particularly in the middle market sector.

That's not to say that there aren't
opportunities in larger buyout I think

we'll see, particularly as deal flow
starts to return that in larger buyout

you'll see the possibility for corporate
carve outs you'll see a continuation of

And I, would really encourage
investors to, take a, another look at

Expert Insight

Take a deep dive into the Australian private capital landscape with Navleen Prasad, CEO, Australian Investment Council, to learn how Australia  is an underrated opportunity for international investors, despite its distance, due to strong economic fundamentals and opportunities in private capital, particularly in tech. Superannuation fund consolidation has increased offshore capital deployment, opening up private equity and venture capital prospects. Hear about dry powder levels in the region and how it is expected to grow in the coming years. 