they are turning to private capital markets for more stable and flexible funding. Waiting for the window to open on IPOs Retail IPOs in Australia have been notably quiet over the past few years, a trend largely driven by economic headwinds and investor apprehension. But industry insiders say there’s a backlog of companies waiting for the right moment to list. “With a few notable exceptions (e.g., GYG, Chemist Warehouse), the IPO market has been relatively depressed in Australia for the last two to three years. The recent uncertainty won’t help reverse this trend,” Andy Hough, corporate finance partner at Pitcher Partners Sydney, told Inside Retail. Still, there are signs of life and potential movement as early as this year. “There is a relatively strong pipeline of IPO candidates, including some in the broader retail category, but time will tell whether the typical IPO window of August to November will be as busy as some were predicting at the start of the year,” he added. One of the more anticipated listings is Virgin Australia, which many expect to debut on the ASX this year. Hough explained the push for a sale is primarily due to the private equity firm’s need to exit within the near to mid-term. The challenge is that there aren’t many other options available, particularly since trade buyers are unlikely to secure approval from the Australian Competition and Consumer Commission. Hough also pointed out that macroeconomic factors are still heavily influencing market sentiment. “There are some macro factors at play globally which are negatively impacting IPO volumes: high inflation, high borrowing costs and the growing popularity and accessibility of private capital,” he said. Private capital on the rise  As public markets remain cautious, private capital continues to play a growing role in the funding strategies of retail businesses. Private equity and venture capital are increasingly seen as viable alternatives to a public float as they provide flexibility and require less regulatory oversight. Business advisory firm Cor Cordis examined data from the Australian Securities and Investments Commission showing a sharp decline in IPOs, which have dropped 82 per cent in capital raised from 2014 to 2024. ASIC data points to private equity and real estate as the largest players in Australia’s private capital sector, totaling $66 billion and $58 billion, respectively.  Buy now, pay later payment processor Klarna recently took a step back from filing its long-awaited US IPO, likely due to the challenges of fluctuating trade policies and tariffs.  Australian investment advice company, Insignia Financial, recently extended its exclusivity period with private equity firms Bain Capital and CC Capital Partners. The deal highlights a growing preference for private capital in strategic funding deals.  With private capital readily available, investors are becoming more selective about which businesses they back on the public stage. To stand out, companies may need more than just a compelling story and demonstrate a clear path to profitability. What’s next The path forward for Australian retail is still being shaped by external forces, but market watchers like Pitcher Partners say preparation is key. For those eyeing a public debut, the coming months may offer new clarity, particularly if inflation begins to ease and investor sentiment rebounds. In the meantime, businesses that focus on tightening operations, securing flexible funding and positioning themselves for future growth will be strategically placed to seize the moment whenever the IPO window finally opens.