Private equity outperforms 2013
Total funds raised by Australian private equity funds this financial year has already outdone total funds raised in 2013, according to the Australian Private Equity and Venture Capital Association (AVCAL) said.
Speaking at the Asian Venture Capital Journal conference in Sydney, head of research at AVCAL Dr Kar Mei Tang said the market and industry was bouncing back after many gloomy years following the global financial crisis.
"Last year total fundraising fell by 70%, as corroborated by ABS numbers released several weeks ago," Tang said.
"The good news is that with 4 months to go in the current year, fund raising is already above the total for FY13."
The average fund size for growth funds that have succeeded in closing a new fund has grown from $116 million between 2004 and 2008 inclusive to $230 million between 2009 and 2013.
The Limited Partner (LP) demographics have changed with more offshore investors and reduced sourcing of local funds over the last five years.
Domestic LPs comprise only a third of funding to the growth fund segment, down from 80 per cent.
The number of companies being exited has stayed steady over the last few years, thanks to the strong initial public offering (IPO) market.
"Private Equity has accounted for 43% of all large listings ($100m +) on the ASX since 2010, however trade sales remain the major exit pathway, accounting for more than 45% of all exits by number of transactions," Tang said.
Recommended for you
Sydney-based alternative fund manager East Coast Capital Management has formed its first advisory council as it enters its next phase of growth.
With 40 per cent of advice practices looking to increase their ETF usage, the next frontier being embraced is smart beta ETFs with flows doubling in July, providers have said.
Australian ETFs saw flows of $5.8 billion in July, more than double the previous month, and adviser adoption is tipped to help total flows reach $50 billion by the end of the year.
Pinnacle’s London affiliate, Life Cycle Investment Partners, has secured over $15 billion in FUM in its first year and achieved profitability, the firm’s fastest affiliate to do so.
