Data published by industry body the Australian Investment Council indicates $161 billion in Australian funds are invested in private assets, an investment category that includes private equity funds, private credit funds and infrastructure assets.

Within these categories are subtypes such as private equity funds. Secondaries hold businesses bought from other private equity funds. Continuation vehicles buy assets, often early-ish-stage companies, from private equity funds that are at the end of their lives. Buyout funds acquire controlling interests in companies, and value-add funds buy undervalued companies that can be improved from an operational and value perspective.

Right now, investors in the private asset realm are especially hungry for secondaries, but are running to avoid exposure to private equity and credit funds filled with software-as-a-service firms. Meanwhile, funds exposed to public-private infrastructure partnerships offer investors defensive potential.

Read more in the Australian Financial Review …

Read more…