The Cambridge Associates Australia Private Equity and Venture Capital Index rose by 2.90 per cent in the third quarter of 2012, according to the latest quarterly report released by The Australian Private Equity and Venture Capital Association (AVCAL).
For the 12 months ending 30 September 2012, the C|A Australia Index rose by 6.44 per cent. Over the same period, the S&P/ASX 300 Index surged to record a return of 14.46 per cent.
However, over the longer three- and five-year horizons the C|A Australia Index outperformed the public equities index, rising by 8.33 per cent and 2.97 per cent respectively on an annualised, net of fees basis compared to the S&P/ASX 300 Index’s 1.69 per cent and -3.61 per cent annualised returns over the same horizons.
In the 12 months leading to 30 September 2012, a total of AUD2.2bn was distributed back to LPs while AUD2.3bn was drawn down.
Katherine Woodthorpe, AVCAL chief executive, says: "The index continues to demonstrate how private equity as a whole has consistently generated stable returns over the long term compared to the more volatile listed markets, on an after-fee basis."
Eugene Snyman, managing director at Cambridge Associates’ office in Sydney, Australia, says: "While the strong performance of both public and private indices in the third quarter is good news to investors overall, we continue to see Australian private equity and venture capital offering greater stability long term."
