Private equity and venture capital records 22 per cent net return
Australian private equity and venture capital delivered a 22 per cent net return in 2014 on the back of record distributions, according to a private equity and venture capital firm, and an investment advice provider.
The Australian Private Equity and Venture Capital Association Limited (AVCAL) found the sector had delivered positive returns for all but one of the last 15 years.
"The last two years saw returns of over 20 per cent net of fees for private equity and venture capital, which demonstrates the value our sector generates for investors," AVCAL chief executive, Yasser El-Ansary, said.
"The double-digit returns that have been generated over the longer term also demonstrate that a meaningful allocation to the sector can significantly boost performance for super funds, sovereign wealth funds, or other investors with a long-term horizon."
Managing director at Cambridge Associates in Sydney, Eugene Snyman, said long-term investors in Australian private equity and venture capital have benefited from strong outperformance over listed markets for the five, 10, and 15 year periods.
Recommended for you
T. Rowe Price believes Australian growth is successfully managing to shrug off consumer weakness, but the firm’s multi-asset team is not yet positive enough to increase its underweight position.
Iress has issued an update denying the validity of “certain statements” made by an alleged threat actor, following a cyber incident last weekend.
The latest budget papers have outlined a $10 million provision for ASIC greenwashing enforcement activity as well as funds for a sustainable labelling regime to be partially met by industry levies.
Betashares has expanded its fixed income solutions with the launch of a new ETF offering exposure to subordinated bonds issued by the big four Australian banks.
