IFM is a pioneer in private equity in Australia with investments in the sector dating back to 1992. IFM is one of the largest private equity investors in the Australian market and we have a lengthy track record covering onshore and offshore investment portfolios.
The central argument for investing in private equity is the potential for returns consistently above the publicly-traded equities market over the longer term. These returns are possible because of the presence of market inefficiencies, which in IFM’s experience are not likely to be eliminated by competition, such as limited investor liquidity and information asymmetry. Private equity investors aim to exploit these inefficiencies by investing in growing businesses, utilising innovative capital structures and restructuring existing businesses - recognising that potentially higher returns bring higher levels of risk.