Private equity beats listed market: AVCAL
Australian private equity and venture capital beat out the listed market in the 12 months to 31 March, according to data from the Australian Private and Venture Capital Association Limited (AVCAL) and Cambridge Associates.
The Cambridge Associates LLC Australia Private Equity and Venture Capital Index (the CA Australia Index) gained 23 per cent against the S&P/ASX 300 Index's 13 per cent over the same one-year period.
The CA Australia Index — an independent performance benchmark for the private equity and venture capital asset class — gained 3.3 per cent in the first quarter of 2014.
The three year returns stood at 12.27 per cent, the 10-year return was at 10.61 per cent and the 15-year return was at 11.69 per cent. However the five-year return was lower than the listed market, coming in at 11.82 per cent, against 13.2 per cent.
"The strong returns experienced in Australia rewarded investors who stayed allocated and invested in the asset class," managing director at Cambridge Associates' office, Sydney, Eugene Snyman said.
"In particular, many institutional investors who followed a disciplined manager selection and implementation strategy achieved a net of fees return in excess of 500bps above listed markets over the long-term."
AUTHOR
Malavika Santhebennur
Recommended for you
Australian fund managers are actively seeking to launch Cayman versions of their funds to attract offshore flows, with Regal Partners set to launch its latest offering this month.
As private markets gain traction in Australia but only a limited pool of talent is available, three recruiters explore whether fund managers should consider looking overseas to find top talent.
With an explosion of private credit managers appearing in the market, two alternatives experts believe a consolidation is needed to maintain the quality of the sector.
Bentham Asset Management has become the latest fund manager to expand its distribution team as it reports increased interest in its credit strategies.
