Private equity pickup boosts performance

Recent data reveals significant new deal activity in the final quarter of last year helped Australian private equity and venture capital funds deliver returns 200 basis points ahead of the ASX 300 Index. 

The Australian Private Equity and Venture Capital Association Limited (AVCAL) confirmed that private equity and venture capital funds in Australia posted returns of 22 per cent in the 12 months to 31 December 2013. 

The Cambridge Associates LLC Australia Private Equity and Venture Capital Index (the CA Australia Index) - an independent performance benchmark for the asset class - reflected a significant pick-up in performance in the final quarter of 2013, gaining nearly 10 per cent compared to the ASX 300 Index which rose 3 per cent in the same quarter.   

The CA Australia Index also outperformed the ASX 300 Index over 1-year, 3-year, 10-year and 15-year time horizons, underscoring the higher returns from private equity for investors over multiple time periods.  

“The index has shown strong returns for the last six consecutive quarters, and the results from this most recent period are especially positive,” AVCAL chief executive Yasser El-Ansary said. 

“The 10- to 15-year returns demonstrate how investors with long-term horizons have been the big winners from this asset class,” he said. 

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