<article><a href="http://www.dealstreetasia.com/tags/Future%20Fund">Future Fund</a>, Australia&#8217;s independently managed sovereign wealth fund, is exploring ways to invest in the country&#8217;s small and medium businesses, which it said are key to the development and diversification of the Australian economy.</article>

<a href="http://www.dealstreetasia.com/tags/Future%20Fund">Future Fund</a>, Australia&#8217;s independently managed sovereign wealth fund, is exploring ways to invest in the country&#8217;s small and medium businesses, which it said are key to the development and diversification of the Australian economy.
At a recent event in Sydney, Future Fund Chief Investment Officer Dr Raphael Arndt said the fund has a desire to see Australia&#8217;s PE and Venture industry thrive, and part of it would be giving small and medium businesses the capital and expertise they need to reach their full potential.
“We believe there are attractive investment opportunities in this sector in which the Future Fund can invest. This will have the added benefit of supporting small and medium Australian businesses to realise their growth potential,” he said.
In its 2016 report, the Australian Small Business and Family Enterprise Ombudsman said there were 2.065 million small businesses in the country employing less than 19 people. They account for 97 per cent of all Australian businesses by employee size.
There were also 51,000 medium-sized businesses, employing 20 to 199 employees, accounting for 2.4 per cent of all firms in Australia.
While banks have been the main funders of these companies, they have not been able to support all of the growth opportunities this sector has generated, Arndt stressed, adding that these businesses are too small to access debt or equity capital markets.
He also highlighted the importance of these businesses&#8217; success to the development and diversification of the Australian economy, including ultimately the listed market should they go on to IPO.
Given the large size of the Future Fund, and its model, which involves a relatively small investment team, Arndt said it has always been challenging for the fund to find an efficient way to invest in these types of businesses.
“We are therefore thinking about how we operate in the Australian market. In doing so we are actively considering ways we can invest in these types of opportunities in an efficient way, and we will hopefully have more to say on this in the near future,” he said.
Future Fund manages five funds on behalf of the Australian government. In total, the fund manages around A$164 billion ($127 billion) “on behalf of future generations of Australians”.
The largest of these funds, the Future Fund, currently stands at around A$139 billion ($108 billion) – and is Australia’s sovereign wealth fund. The Fund was established in 2006 to strengthen the Australian Government’s long-term financial position.
Also Read:
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/australia-nab-ventures-brickx-agridigital-93349/">Australia: NAB Ventures backs BrickX; AgriDigital closes Series A led by Square Peg</a>
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/australias-future-fund-returns-1-6-in-march-quarter-71315/">Australia’s Future Fund posts 1.6% return in Q1 after alternative assets focus</a>

Future Fund, Australia's independently managed sovereign wealth fund, is exploring ways to invest in the country's small and medium businesses.

Australia's sovereign wealth fund Future Fund eyes SME investment

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief

Australia's sovereign wealth fund Future Fund eyes SME investment

Start your deal-making journey now!

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief