Australia and New Zealand’s private capital markets are evolving quickly, underpinned by large pools of institutional capital, growing cross-border investment, and a more demanding regulatory environment. As institutional investors become more active in accessing private markets, the region is evolving beyond a simple growth story into one defined by scale, governance, and operational maturity. In this Q&A, we explore the forces reshaping private capital across Australia and New Zealand and the expectations that will define its next phase of development.
What is driving Australian superannuation funds’ shift into alternatives?
In both Australia and New Zealand, there has been a steady rise in allocations to alternative assets. In Australia, that figure has moved to nearly 20% today [1]. This trend is expected to continue, supported by Australia’s policy and regulatory framework, which encourages superannuation funds to increase allocations to unlisted assets. Allocations could potentially reach 30% by 2030, according to industry forecasts [2].
Australia’s superannuation funds are operating at a far larger scale than they were a decade ago, with around AUD $4.5 trillion available to deploy globally [3]. At that size, they need investment opportunities that are both meaningful and scalable while still delivering diversification and long-term returns.
The regulatory environment is also helping build confidence through improved transparency, valuation discipline, and a continued focus on the retirement purpose of superannuation.
As larger Australian superannuation funds build more direct exposure to alternatives, how is the traditional GP-and-LP relationship changing?
The biggest superannuation funds are no longer relying on the traditional model of committing capital to external managers and waiting for returns. Many are growing in scale and sophistication. As they do, the trend is toward investing more through co-investments and direct deals, often alongside other institutional investors.
That gives LPs greater control over portfolio construction as well as greater visibility on where capital is deployed. It’s also more competitive from a fee perspective.
This alters the GP-and-LP relationship in the sense that large LPs are becoming more active and more selective, often with higher expectations around transparency and governance.
What is the story behind New Zealand emerging as a private markets powerhouse?
New Zealand’s emergence can be attributed to its strong economic fundamentals, stable political environment, and continuously growing focus on environmental sustainability. The country’s pursuit of environmentally friendly and renewable energy initiatives has created vast opportunities in infrastructure deals, attracting private capital.
The other important shift is cross-border investment. Australian GPs increasingly see New Zealand LPs as sources of sophisticated long-term capital. New Zealand investors are looking across the Tasman Sea for more scale and deal flow. That is making the two markets feel more connected than they did even a few years ago.
LPs are no longer passive capital providers. What is the new playbook?
LPs are becoming far more active than they once were. Investors now expect more say over structure, stronger governance, and better transparency around valuations and GP-level reporting. They are also increasingly pursuing direct investments and co-investments with trusted GPs, giving them more influence over fees and performance outcomes.
ESG and governance considerations are also a bigger part of the mandate, especially in New Zealand and increasingly so in Australia.
Access to data is becoming more important too. This is where dedicated teams and platforms, such as BNP Paribas’ CapLink Private, are relevant, helping gather and organize information shared between GPs and LPs.
Regulatory and transparency pressures have intensified. How are LPs and GPs navigating that while maintaining a competitive edge?
In Australia, regulators are taking a much closer look at how unlisted assets are valued, particularly where those valuations affect superannuation fund unit pricing. Private credit in particular is under scrutiny, especially around loan origination practices following liquidity concerns. For GPs, that means it is no longer enough to deliver performance; they must also clearly show how valuations are determined and how risks are managed.
In New Zealand, similar pressure is building around climate disclosure and trustee oversight. Against this backdrop, fund administrators appointed by GPs play a critical role in facilitating fund accounting and reporting, compliance and regulatory support, investor services, and operational support.
How are tools like BNP Paribas’ CapLink Private helping GPs meet those demands without compromising agility?
CapLink Private is designed to make private market data easier to gather, organise, and report. In a market where information is often fragmented and hard to access, it gives both GPs and LPs clearer visibility over underlying investments.
For GPs, this means bringing together information on underlying investments across all levels of the fund structure; this information is broken down by share class as well as investor positions, both for direct investments and funds of funds. For LPs, it provides better portfolio oversight, along with more efficient reporting and data visualisation including ESG-related data.
Cross-border collaboration is accelerating. What is fueling this trend?
Collaboration is accelerating in both directions. KiwiSaver capital is investing into Australia, particularly in areas such as renewable energy, while Australian investors are also active in New Zealand. More broadly, GPs and LPs based in Europe, the Middle East & North Africa and the US are increasingly looking at Australia and New Zealand as a connected private capital market, or a “single allocation story.”
It makes sense for global investors, especially from the US and Europe side. The two markets share a lot of the same appeal: regulatory stability; similar sector strengths; and good access to long-term themes such as infrastructure, healthcare, and energy transition.
It’s also a region that has more scale and stronger exit activity than people might expect. The Australia and New Zealand region is increasingly viewed as one credible, investable private capital zone rather than two separate markets.
By 2030, Australia and New Zealand’s private capital landscape will look different. Which sectors and strategies will dominate?
Private credit has room to grow. More US and European managers are looking to build private credit strategies in Asia-Pacific, particularly through direct lending, and we expect it to become a much larger part of the private capital mix.
More broadly, we would be careful about saying that all capital will rush into one sector. Technology will remain important, but we see its power as dispersed across sectors—healthcare, energy, logistics, and other industries—rather than as a standalone theme. Infrastructure, too, will remain central, particularly where it lines up with energy transition. Selective real estate segments such as logistics and data centers should also continue to attract capital.
How should GPs position themselves now to align with tomorrow’s allocation trends?
The first thing is transparency. GPs really need to be ready for a much higher bar on transparency and be prepared for those conversations on trustee and regulatory requirements.
Secondly, regulatory scrutiny is not going to soften. Investors and regulators want more detail on how assets are structured, how they are valued, and how they are reported. In a market like Australia, that is quickly becoming a point of differentiation.
From our perspective, data, reporting, and control frameworks are also critical now. Managers need to be able to prove what they are doing, not simply report it at a high level.
This is where support on the operational side really matters and where service providers like BNP Paribas’ Securities Services business can support GPs. By taking care of the operational and reporting side, a good service provider helps GPs focus on what they do best and spend the most time on where they can add value: investment and execution.
Final thoughts
As private capital in Australia and New Zealand continues to mature, the market is becoming more connected, more transparent, and more operationally demanding. Rising institutional allocations, stronger regulatory oversight, and growing cross-border activity are all reshaping how capital is deployed across the region. In that environment, robust data, disciplined reporting, and strong servicing partnerships will be increasingly important in helping both GPs and LPs navigate complexity and capture long-term opportunities across Australia and New Zealand.
This article was first published by PitchBook in its 2026 Southeast Asia Private Capital Breakdown report.
[1] “Governance of Unlisted Asset Valuation and Liquidity Risk Management in Superannuation,” Australian Prudential Regulation Authority, December 2024.
[2] “Super Insights 2025,” KPMG, n.d., accessed May 5, 2026.
[3] “Quarterly Superannuation Performance Statistics Highlights,” Australian Prudential Regulation Authority, December 2025.