private capital markets in Australia include both private equity funds, venture capital and other capital providers, including equity and debt financing.

the private equity market in Australia is relatively small, however, a growing market, especially in the period 2000-2007.

In the last five years, a significant increase in new private equity funds operating in Asia or set up its representative office in Australia. Major private equity funds in Asia are usually from Japan or Singapore at this stage, but other state companies, particularly China, owned by private equity have increased their activities in Australia, particularly in the mining and resources.

Most private equity firms based in Australia are interested in traditional business, IT or related companies – which are largely in the hands of venture capital funds.

private equity firms in Australia were largely responsible for taking over companies established also in retail and manufacturing industries, a lot of offers of debt is financed with large debt ratio, now causing concern some of the companies acquired

2008. there was a basis for consolidation among private equity firms in Australia. Some were run by wealthy families in Australia, some were acquired by business consulting firms or investment firms abroad as a way to geographically diversify their interests.

In the medium term, further consolidation to take place in Australia, both medium and large private capital. See more European companies and U.S. private equity sale of shares in private equity and sovereign funds in Asia held many similar trend is also likely to occur in Australia.

Australian private equity funds tend to perform differently than other private equity funds in the world – because of the nature of business and a strong emphasis on mining and resources.

However, this will change due to rapid deterioration of the Australian mining market in Australia is Investment

. Change, and now is the formation of strong links with Asia. Newly elected Labour government, in particular, said close links with China, and opened direct investment allows Chinese citizens to invest directly in Australia -. Previously this was done, usually through a representative or delegate in Australia

While the real impact is too early to predict has been a growing number of direct investments by financial institutions in China such as CITIC lately, and recent heavy investment in Australia Rio Tinto is another good example of how the Chinese government or Chinese-sponsored venture capital private companies are taking a keen interest in Australian assets.