Australia lacks growth capital – and it’s hurting our productivity (opens original article in a new tab)

Australia's SMEs face a significant equity funding gap, with most private equity funds directed towards large buyouts rather than growth capital, leaving many businesses unable to access necessary capital for expansion.

• ABGF research highlights a $38 billion equity funding gap for Australian SMEs despite $65.5 billion in private equity funds
• Most private equity funds are used for recapitalisations and large buyouts, with only 2% allocated to growth capital
• Australian SMEs rely heavily on debt and personal networks for funding, compared to institutional investors in other countries