Julia Vargiu.
Australia's marketing, media and technology-enabled services sectors are still of interest to private equity investors but they are becoming more selective, according to the latest SI Global's 2026 Private Equity Insights Report.
The report finds that 55% of Australian marketing sector transactions involving private equity or PE-backed buyers in 2025 were completed with international acquirers, reinforcing Australia's continued appeal to global investors.
It also shows money continues to flow to businesses with specialist capability, strong leadership and clear long-term value creation, despite a more disciplined investment environment.
Julia Vargiu, director Australia at SI Global, said the report signals a significant shift in the conversation founders should be having.
"The question is no longer whether private equity is interested in your sector,” she said.
“The real question is whether your business is genuinely investable.
"Capital hasn't disappeared. Investor expectations have increased. The businesses attracting the strongest interest are those with differentiated capability, resilient earnings, experienced leadership teams and a clear strategy for creating value."
Now in its third year, the report draws on analysis of 80 private equity firms, 266 portfolio companies, 300 platform investments and more than 600 bolt-on and follow-on deals, alongside insights from leading lower mid-market private equity investors.
The report also identifies AI as one of the defining factors reshaping how private equity investors assess value creation.
While AI is increasing scrutiny around margins, delivery models and defensibility, SI Global’s research finds investors increasingly view AI as an opportunity when combined with strong leadership, differentiated capability and a clear commercial strategy.
Investors are not just looking for businesses adopting AI tools. They are looking for management teams that understand how AI will impact their market, strengthen their proposition and support long-term value creation.
The increase in refinancing activity, alongside an improvement in exits, reflects how investors are managing extended hold periods while continuing to seek high-quality assets and becoming more selective about new platform investments.
The Australian analysis reinforces the report's central finding that investors remain active but are becoming more disciplined about where they deploy capital.
Private equity has not lost interest in the sector. Capital is available, investors remain active but fewer businesses are now clearing the increasingly high bar for investment.
The SI Global analysis reviewed 31 completed marketing sector transactions across APAC involving PE or PE-backed buyers, including 11 Australian-headquartered target companies.
Marketing Services accounted for 36% of Australian marketing sector transactions analysed involving PE or PE-backed buyers during 2025, followed by Marketing Technology (27%), Digital Services (18%) and Data & Analytics (18%), reinforcing strong investor demand for specialist capabilities across the marketing ecosystem.
Michael Chin, director at SI Global, said today's market rewards preparation.
"Businesses preparing to attract investment should assume buyers will test every assumption,” he said.
“Strong governance, clear reporting, management depth and repeatable earnings are increasingly becoming competitive advantages in themselves.
"The strongest outcomes come from founders who invest in governance and operational maturity well ahead of entering a transaction process, rather than relying solely on growth narratives."
The SI Global's report shows private equity deal volumes across business services fell 29%.
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