Private equity funds will come under the spotlight at a Australian parliamentary inquiry, according to Sky News [via Private Equity Wire].
The Australian Senate’s economics committee will investigate the impact of private equity groups on the economy and the risks they may pose to investors. The committee will assess domestic and international trends concerning private equity and examine whether existing laws governing equity funds are sufficient.
The inquiry will also assess long term tax effects of large private equity deals on government revenue.
Australia is in the middle of an unprecedented flurry of private equity activity. Last year, Australia’s local private equity managers raised more than A$4bn. Australia’s commodities-driven boom and Anglo-Saxon corporate culture have attracted overseas investors in droves. The country is also the hedge fund capital of Asia, with assets under management by Australian hedge funds standing at A$62bn last June.