Australia

PE activity first-half comparison (2016-1H2025)

Private equity has observed a rebound in the first half of 2025, with the value of complete deals growing to $7.9b, up 153% over the prior period. Investments in technology, industrials and healthcare continue to drive PE dealmaking activity, with 15 technology deals completed in the first half. This uplift has likely been driven by a multitude of interconnected factors – high levels of excess committed capital ‘dry-powder’ that is yet to be deployed (estimated $30b in Australia), easing short-dated interest rates, more turnaround opportunities in the mid-market space and a generation of business owners looking to retire and exit.

Looking ahead

These drivers of increased, buy-side private equity activity in the mid-market are expected to continue. However, market commentators and William Buck have observed that private equity funds are struggling to exit their investments within the holding period timeframes outlined in fund mandates.

Consequently, we expect private equity funds to rely on alternative exit strategies, such as using continuation funds. These funds provide liquidity events for existing shareholders while also providing new and existing investors the opportunity to subscribe to the new fund and realise a company’s next chapter of growth. Should public market volatility and uncertainty abate, it is likely that IPOs will drive exit opportunities for companies in maturing PE funds.

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