Industry Analysis & Industry Trends
Leading up to 2007, private equity investments were kind to both investors in private equity funds and the private equity firms that managed them. Stable economic conditions, steadily rising sharemarkets and cheap, abundant debt financing fuelled a global boom in large private equity buyouts. Numerous major companies were bought by private equity, overhauled and sold for large profit. This led to strong returns for investors in private equity funds, along with strong fee revenue for private equity firms.
The global financial crisis put an end to the cheap credit conditions and consistently rising asset prices, resulting in substantially reduced private equity activity. Although struggling companies made for good bargains, the dearth of funds caused investment activity to slow... purchase to read more
Industry Report - Industry Locations Chapter
Australia's financial hub is located in Sydney, NSW, where the largest proportion of private equity firms is registered. IBISWorld estimates show that there are 47 firms operating in the Private Equity industry across Australia. Of these, 78.7% are located within the borders of New South Wales, predominantly in Sydney's CBD. A further 12.8% of firms are situated in Victoria, mainly in Melbourne's CBD, which is the other major financial hub of Australia. Together the two regions account for about 90% of total firms in the Private Equity industry. The reason for their dominance is that they are densely populated, where a large number of financial transactions take place, necessitating the establishment of financial firms to meet the demand for financial services that exists... purchase to read more