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 equities manager Datt Capital has built a retail-friendly version of its small-cap strategy for advisers, previously only available for wholesale investors.
The dominance of passive funds is having a knock-on effect on Australia’s M&A environment by creating a less responsive shareholder base, according to law firm Minter Ellison.
Morningstar Australasia is scrapping its controversial use of algorithm-driven Medalist ratings in Australia next year and confirmed all ratings will now be provided by human analysts.
LGT Wealth Management is maintaining a neutral stance on US equities going into 2026 as it is worried whether the hype around AI euphoria will continue.
