Competing for Global Capital: How Australia Must Reposition to Win

Australia has no shortage of compelling investment opportunities, the challenge is positioning them to compete for capital within global portfolios. 

International investors are assessing opportunities across North America, Europe and Asia-Pacific simultaneously and while an Australian asset may be attractive on its own merits, it must justify itself as the most compelling use of capital. 

Attracting global capital therefore requires Australian managers to understand how international investors make allocation decisions, what they potentially expect from their partners and how an opportunity fits within their wider portfolio strategy. 

Start with the investor, not the asset 

Investment opportunities are often presented from the asset outwards with the location, quality and projected performance described first, leaving the investor to determine how the opportunity fits their strategy. 

Competing for global capital requires the opposite approach as managers need to begin with the investor’s objectives and position the opportunity accordingly. 

That means being clear about the role an investment will play within a portfolio, the source of its return and the capabilities required to deliver it. It also means understanding requirements around governance, liquidity, control, reporting and the timing of deployment. 

A sovereign institution, pension fund, private equity investor and private wealth platform may each assess the same opportunity differently. Managers that understand these distinctions can make a more precise case, demonstrating why an opportunity meets a particular mandate rather than relying on a general argument for investing in Australia. 

Build for deployment 

A single asset may establish interest, but a credible pipeline can establish a relationship. In those circumstances, pipeline development should therefore begin before a capital-raising process is formally launched. The objective is not to promise scale for its own sake, but to demonstrate a clear area of conviction, reliable access to opportunities and a practical plan for deployment and ultimately performance. 

A credible pipeline must also be matched by execution capability as investors want confidence that a manager can source opportunities, complete due diligence and deploy capital within the required timeframe. They also want clarity on how decisions will be made once the relationship is established. 

Managers should anticipate where flexibility may be required. This could relate to the size or timing of a commitment, the investor’s level of control or the balance between direct investment and co-investment. 

Execution certainty does not mean fixing every element from the outset. It means explaining what is essential, where flexibility exists and how the parties will move from agreement to deployment. 

Partnership structure is a strategic decision 

The growing role of joint ventures, co-investment arrangements and capital partnerships reflects a broader change in the relationship between investors and managers. The share of joint venture transactions in the across the Australian commercial property market rose to a record high of 14% in 2025 and this trend is expected to continue. 

Global investors increasingly want a combination of access, expertise and alignment. Australian managers, in turn, are becoming more open to third-party capital and longer-term strategic relationships. This shift is reflected in the share of cross-border transactions involving a joint venture with an Australian investor rising steadily to around 25% since 2020. 

This growth is about more than volume: global investors are now placing as much weight on the partnership itself as on the underlying asset. A partnership is not created simply by placing two parties alongside one another in a transaction. Its structure must reflect how decisions will be made, responsibilities allocated and risk shared. 

Some investors may prefer a joint venture built around a defined portfolio, while others may seek co-investment rights alongside a broader mandate. Private credit or structured equity may also provide an effective route where speed or flexibility is important. The appropriate structure will depend on the strategy and objectives of the parties. 

Securing an initial commitment is important, but repeat capital is the stronger measure of success. Investors are more likely to expand a relationship when the manager has delivered against the original strategy, communicated clearly and continued to provide relevant opportunities. 

Australia’s success will not be determined solely by the quality of its real estate. The advantage will belong to managers that can translate Australian opportunities into globally relevant propositions and demonstrate that they have the pipeline, partnership structures and execution capability to deliver. 

This article is from Knight Frank’s Capital Exclusive publication. To download the publication, click here.