is set to shrink even further as private equity giants swoop and ASX hopefuls are scared off by onerous governance requirements and “noisy shareholders”.
“Certainly for the ASX it’s a difficult long-term trend to reverse,” Mr Pathak said. “It’s only going one way.” He believes that once there is a clear signal from the Reserve Bank that rate rises this cycle have ended, there may be a step-up in broader M&A across the market. Market players are also nervous about the
Private equity buyouts have been happening regularly. Aged care home operator Estia, with 73 sites and 8000 staff, was bought out by, which owns brands such as White Lady Funerals and Simplicity Funerals, has disappeared from the ASX after shareholders on October 31 voted in favour of a $1.8 billion buyout from private equity group TPG.Mr Pathak said the influence of industry funds in capital markets would keep rising and their power would mirror that of large pension funds in Canada.