Blog | Preparing for 2026: Capital Raising in a Changing Market

As 2026 draws near, business owners focused on growth will notice a rapidly changing financial environment. The era of easy capital has changed, replaced by a complex mix of tightening global liquidity, heightened investor scrutiny, and shifting asset valuations. For growth-focused businesses, preparing now is essential to successfully secure business growth funding in this new environment.

The recently published Australian Private Capital 2025 Yearbook paints a telling picture. While total Australia-focused assets under management (AUM) remain steady at $139 billion, the fundraising climate has cooled. Private capital fundraising in Australia dropped to its lowest level in a decade, halving from over $10 billion in 2023 to just $5 billion last year. The number of private capital funds closed globally was less than half that of 2021, falling almost a quarter year-on-year to the lowest total since 2014.

This contraction presents both challenges and opportunities for business owners. On one hand, fewer deals mean heightened competition for available capital. On the other hand, funds with dry powder are increasingly selective, prioritising well-prepared businesses that demonstrate clear strategic direction, strong financial structures, and a defensible growth plan.

Why Preparation is Non-Negotiable

In today’s environment, capital raising is no longer about simply having a good story. Investors demand detailed financial visibility, operational transparency, and confidence in leadership teams’ ability to manage uncertainty. For businesses seeking business growth funding in 2026, early preparation is key:

  • Strong Financial Modelling: Demonstrating reliable forecasting, with clear assumptions and sensitivity analysis that reflect multiple market scenarios.

  • Operational Efficiency: Highlighting scalable systems, process discipline, and strong governance frameworks that can support growth.

  • Clear Strategic Vision: Articulating where capital will be deployed, how value will be created, and what the return profile looks like for investors.

  • Risk Management: Proactively addressing key risks, be it supply chain, regulatory, or market exposure, and demonstrating mitigation strategies.

At Dillon Clyne, we advise our clients to approach capital raising not as a transaction, but as a strategic corporate event. Our experience across corporate finance, business advisory, and international expansion ensures that when our clients go to market, they do so with confidence and a compelling investment case.

The Shifting Dynamics of Private Capital

Despite tighter fundraising, certain sectors remain highly attractive. Private credit, for instance, continues to draw significant interest due to its resilience in a high-interest environment. It has become an attractive asset class among global private wealth investors due to its ‘floating rate’ properties in a high-interest rate environment. This trend is leading managers to create open-ended private credit funds targeting Australian investors, opening new pathways for alternative business growth funding solutions beyond traditional equity.

Venture capital (VC) also shows signs of resilience, with AUM rebounding 7% to $17 billion as investor appetite cautiously returns to early-stage innovation. Meanwhile, private equity faces continued headwinds with slowed AUM growth and global deal-making challenges.

However, a notable trend is the increasing localisation of investment capital. Investors from ANZ continued to make up the majority of investors in Australia-based funds, increasing from 49% for funds of vintages 2015-2019 to 54% of investors in funds of vintages 2020-2024. This shift underscores a growing appetite among domestic investors to back Australian businesses, particularly those demonstrating strong fundamentals and scalable models.

Positioning for 2026 and Beyond

For Australian entrepreneurs and business owners, the path to business growth funding in 2026 requires strategic foresight. Waiting until capital is urgently needed is a high-risk strategy. Instead, the most successful businesses will begin positioning well in advance, building relationships with potential funders, refining their corporate narrative, and ensuring their financial house is in order.

At Dillon Clyne, we specialise in guiding businesses through this preparation phase. Our team provides practical, immediate advice specifically designed for your business’s unique growth path, whether you aim to raise capital, manage an acquisition, or expand globally.

Ready to capitalise in 2026? Contact Dillon Clyne today to discuss your capital raising strategy.