29  April, 2022

Private capital gives the Australian economy a $54 billion boost


SYDNEY: Companies under private capital ownership in Australia account for $54 billion in total value added to the Australian economy, a new study has revealed.

The Funding a brighter future study, commissioned by the Australian Investment Council and conducted by EY, shows the private capital industry employed 474,000 people across Australia in 2020, through the peak of disruption caused to the COVID-19 pandemic.

“Companies backed by private equity, venture capital and private credit continued to grow businesses and create jobs across Australia’s economy during this time of uncertainty, and contributed 2.6 per cent to Australia’s GDP” said Jonathan Kelly, Interim CEO of the Australian Investment Council.

“Our members are investing to drive growth in sectors that will enable Australia’s long-term prosperity, such as healthcare, digital technologies and advanced manufacturing,” he added.

“Private capital is playing a key role in building healthcare models of the future through investing in innovative service delivery in areas such as disability, mental health, at-home and community-based services and preventative care; and is also nurturing and commercialising new medical technologies and pharmaceuticals,” Mr Kelly said.

In specific industry sectors, private equity and venture capital-backed health and medical companies contributed more than 120,000 FTE jobs and almost $10.8 billion in gross value added to the Australian economy while technology companies backed by Australian Investment Council’s members provided a further 86 000 FTE jobs and contributed $11.6 billion in gross value added to the economy.

Investment by private capital is a key contributor to the growth of Australia’s tech sector, which is expected to become the third largest industry behind mining and finance and is already our nation’s fourth largest sector for exports.

Read the Funding a brighter future report here

For an interview with Jonathan Kelly, Interim CEO of the Australian Investment Council, please contact:

Robyn Tolhurst
Public Affairs Manager
E: [email protected] | M: +61 436 388 919

About the Australian Investment Council:

The Australian Investment Council is the voice of private capital in Australia. Private capital investment has played a central role in the growth and expansion of thousands of businesses, which together represent a multi-billion-dollar contribution to the Australian economy. Our members are the standard-bearers of the professional investment community in Australia and include: private equity, venture capital, corporate venture capital, private credit funds, family offices, institutional investors such as superannuation and sovereign wealth funds, as well as leading financial, legal and commercial advisers.