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Global private equity firm sets up shop in Australia

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4 minute read

A new private equity firm has entered the Australian market.

Advent International has announced the opening of its office in in Sydney to service Australia and New Zealand, alongside the appointment of Beau Dixon as managing director and head of the firm’s operations Down Under.

With offices in India, China and now Australia, Advent said it is continuing to build out its capabilities across the Asia-Pacific region.

“Establishing a presence in the Australian and New Zealand markets is part of Advent’s continued global growth, and further enhances its presence in the attractive Asia-Pacific region,” the firm said in a statement this week.

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Its aim, according to the statement, is to invest in leading companies that operate in Advent’s core sectors, including business and financial services, healthcare, industrial, retail, consumer, and leisure, and technology.

Commenting on the firm’s entry into the Australian market, Shweta Jalan, managing partner at Advent International, said: “Establishing a presence in Australia and New Zealand will support our continued growth in the Asia-Pacific region, where we are already well-established in India and China”.

“As a global private equity firm with a strong investment track record, we apply both in-market and sector experience to unlock local opportunities at scale and build businesses. We are thrilled at the opportunity to bring our world-class model to our current and future investments across Australia, New Zealand and beyond.”

Dixon joins the company after a stint at Anchorage Capital Partners where he was a managing partner.

On his appointment, Dixon said: “I look forward to joining one of the leading global private equity investors and working closely with the Advent team to build out our presence in Australia and New Zealand”.

“Advent has excellent global experience and subsector specialisation, which will add further depth and sophistication to the local market. Together, we will look to invest and build forward-looking businesses and drive sustainable growth.”

Australia has seen substantial growth in private equity funds, with assets under management nearly tripling to $66 billion over the past 15 years.

This has come amid a notable slowdown in initial public offerings and a trend of public companies transitioning to private ownership. Last year alone, the ASX market cap saw a reduction of $55 billion, highlighting the dynamic shifts within the market.

The corporate regulator has recently been particularly vocal regarding its focus on private markets towards ensuring they are fair to investors.

Also this year, the Reserve Bank of Australia (RBA) highlighted the “significant growth” of Australia’s private equity market as a potential pitfall.

Namely, the central bank noted that while private equity investments can foster growth in new and underperforming companies, the private market’s less stringent governance and reporting requirements, compared to public markets, may hinder transparency and informed investment decisions.

Moreover, the RBA argued that the increase in private equity buyouts has reduced public market diversification and removed equity capital from the public market, contributing to a greater concentration of large companies despite a decline in new listings and IPOs.

Maja Garaca Djurdjevic

Maja Garaca Djurdjevic

Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.