The Australian Business Growth Fund (ABGF) is a public-private partnership established to provide long-term, patient capital to small and medium-sized enterprises (SMEs) in Australia. It was incorporated in October 2020 and is modeled after the UK's Business Growth Fund. The ABGF invests between $5 million and $15 million in growth-ready businesses with revenues ranging from $2 million to $100 million, acquiring a minority stake of up to 49%[1][4]. ### Key Features of ABGF - Investment Scope: ABGF targets SMEs with strong growth potential, focusing on businesses that can leverage its capital for expansion into new markets, product development, mergers and acquisitions (M&A), and succession planning[1]. - Patient Capital: Unlike typical venture capital or private equity firms, ABGF adopts a long-term investment approach, not expecting immediate returns. This allows SMEs to focus on sustainable growth rather than short-term profitability[1]. - Governance and Support: Beyond financial investment, ABGF offers strategic expertise and governance support. It helps SMEs assemble a board with experienced directors and provides access to a network of business leaders and strategists[1]. - Partnerships: The fund is supported by major Australian banks, including NAB, Commonwealth Bank, Westpac, ANZ, HSBC, and Macquarie Group, reflecting its collaborative approach to supporting SME growth[1]. ### Regulatory and Competitive Neutrality The ABGF has been subject to scrutiny regarding competitive neutrality. However, the Australian Government Competitive Neutrality Complaints Office found that the capital treatment of ABGF investments does not breach the government's competitive neutrality policy[3]. This ensures that ABGF operates on a level playing field with other investment vehicles in Australia.