Private equity investors are pouring money into businesses servicing the National Disability Insurance Scheme, sensing an opportunity for outsized returns, after profits in the sector grew more than 29 per cent on average every year since 2018.

“The NDIS is quite fragmented, but it is one of the largest schemes outside Medicare,” said Jonathan Lim, the founder of investment firm Liverpool Partners. He added that it was unfair to label private equity plays in the industry as solely about returns.