5678.0 - Venture Capital and Later Stage Private Equity, Australia, 2016-17 Quality Declaration 
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 28/02/2018   
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Investors in VC&LSPE funds (vehicles) are generally institutional investors from Resident Pension Funds, Non-Resident sources and Other Resident Funds (such as governments and business). There was $22,564m committed to VC&LSPE funds (vehicles) as at 30 June 2017. The contribution of Non-Resident Funds continues to increase. This is the first time that Non-Resident Funds make a larger contribution than Resident Pension Funds.

Commitments by source of funds, as a percentage of total commitments, 2012-13 to 2016-17


There were 217 VC&LSPE funds (vehicles) in 2016-17.

VC&LSPE funds had Net assets of $10,858m as at 30 June 2017, an increase of $1,376m from 30 June 2016.

As at 30 June 2017, 128 of the 217 VC&LSPE funds (59%) were participating in a government program, an increase of four investment funds from 2015-16.

The majority of returns on investment to investors are through exits from investments. The value of exits through Trade sales was $699m in 2016-17.

The most common valuation method used by VC&LSPE funds (vehicles) in 2016-17 was Directors’ valuation (132 funds), followed by Cost/Book valuation (51 funds), and Independent valuation methods (34 funds).


At the end of the 2015-16 financial year there were 723 active VC&LSPE investment deals valued at $9,213m. During the 2016-17 financial year $1,881m was invested in new VC&LSPE investment deals, and an additional $366m of Follow-on investment was made to existing VC&LSPE investment deals. Following revaluations and exits during the year, there were 806 continuing investment deals valued at $10,575m as at the end of the 2016-17 financial year.

Investee companies in the Leveraged Buy-Out (LBO)/Initial Public Offering (IPO)/Listing stage accounted for $4,150m or 39% of the total value of investments at the end of the 2016-17 financial year.

The majority of the total value of investment was in investee companies with head offices in New South Wales and Queensland (41% and 18% respectively), while Overseas investee companies accounted for 19% of the total value of investment in 2016-17.

In 2016-17, both the Trade and accommodation and Health care and social assistance industries accounted for 19% of the total value of investment.

Industry of investee company, as a percentage of the value of investment, 2015-16 to 2016-17

When analysed by activity, as defined by the Standard and Poor's Global Industry Classification Standard, the Retail, services and real estate group of activities attracted the largest share of investment, with $3,729m or 35% of total investment as at 30 June 2017. This was followed by the Manufacturing and transport group of activities, with $3,087m or 29%.
Activity of investee company, as a percentage of value of investment, 2012-13 to 2016-17