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Australian PE and VC generated attractive returns over one, three and five years

Australian private equity and venture capital generated attractive returns over a one-, three- and five-year periods as of June 30, 2010, when compared with the S&P/ASX 300 Index and the S&P/ASX Small Ordinaries Index, according to the new Australia Private Equity and Venture Capital Index. 

This is the first report from the Index, which is a result of a strategic partnership between AVCAL (The Australian Private Equity & Venture Capital Association Limited) and Cambridge Associates, global provider of independent research and investment advice. Going forward, Cambridge Associates and AVCAL will issue performance data each quarter. The data will include Australia private equity and venture capital industry returns compared to other market indices. As coverage of the industry grows, additional data will be released.

Under the agreement between Cambridge Associates and AVCAL, AVCAL will give its members access to aggregate Australian PE and VC benchmark data and statistics.

"We are very pleased to see the data reflecting how Australian private equity as a whole has performed very well despite challenging market conditions," says Katherine Woodthorpe, Chief Executive of AVCAL. "Nevertheless, while investments have picked up pace — and growth funds in particular have been active despite the global financial crisis — conditions in the fundraising, debt and exit markets remain challenging. However, as the exit market improves over time we should expect to see continued attractive returns to fund investors in general." 

Sydney-based Eugene Snyman of Cambridge Associates, says: "Independent, rigorous data and analysis are at the root of sound decision making. Accordingly, we work continuously to develop the most accurate, comprehensive data possible on private equity, venture capital and all other alternative asset classes. We are delighted to be working closely with AVCAL, as we support its ongoing efforts to advance transparency in Australia’s private equity and venture capital industries."

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