Global private equity gets a rap

By Sara Rich

Despite a limited number of competitors, two Australian-based global private equity funds have emerged onto the market with impressive ratings.

Credit Suisse Global Private Equity Fund has been added to Zenith InvestmentPartners’ recommended list, with the investment researcher claiming the fund provides additional diversification benefits over its domestic-focused counterparts.

Macquarie InvestmentManagement Global Private Equity Fund received similar acclaim, with a four star rating from independent credit assessor Standard &Poor’s, which said the fund would provide a valid alternative to other internationally investing growth funds.

According to Zenith director David Wright, the Credit Suisse fund, which DLJ Merchant Banking Partners (DLJMB) is to manage, is the first global private equity offer available to retail investors.

Zenith met with and reviewed two of the DLJMB investment professionals and was impressed by their experience, expertise and level of private equity investment knowledge.

Standard & Poor’s fund rating analyst Simon Scott said of the Macquarie fund: “This fund will appeal to investors who are comfortable with the risk/reward balance in international equities, but feel a specialist fund could be attractive.

“This fund should not be viewed as an equivalent to the high risk, high reward characteristics shown by investing directly in an unlisted private equity fund.”