Productivity Inquiry Phase two: focal areas

The role of private capital in Australia’s economy cannot be underestimated. It provides stable, resilient capital in times of downturn, and powers the entrepreneurship and innovation that drives economic growth. Its ability to spot trends ahead of the broader market means private capital acts as a powerful catalyst for change, while its commitment to patient, long-term funding nurtures this change as markets emerge and evolve.

Private capital encourages more evenly distributed access to funding, offering alternative non-bank sources of financing and organises the more efficient allocation of capital across the economy. It is the platform that allows good businesses to become great ones, all while providing stable, consistent employment to thousands of Australians today and helping create the high-growth sectors that will deliver the jobs of the future. The growth of Australia’s private capital sector is testament to the value it brings to our economy and society. The industry is thriving, with Australian private capital assets under management (AUM) totalling $90 billion in 2021, an increase of 11 per cent in the six months from December 2020.

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