Australian private equity and venture capital has continued to deliver strong returns, outperforming the S&P/ASX 300 Index by over 8 per cent in the June 2015 quarter and delivering a 23 per cent net return for the year to 30 June 2015.
That’s according to data released today by the Australian Private Equity and Venture Capital Association Limited (AVCAL) and Cambridge Associates.
The Cambridge Associates LLC Australia Private Equity and Venture Capital Index (the CA Australia Index) – which is the leading independent performance benchmark for the private equity and venture capital asset class – outperformed the listed markets through all time horizons from one-year right up to 15-years.
“The numbers show that on average, the private equity and venture capital asset class delivers returns of about 4 per cent above listed markets, measured over the medium to long-term,” says AVCAL Chief Executive Yasser El-Ansary. “The pace of good exits seen over the last few years has remained strong, and that has helped to deliver to superannuation fund members and other investors exceptional returns in the face of a low yield environment in most other asset classes.
“This data confirms how important it is that we do everything we can to support expansion of the early and later stage private capital market in Australia – increasing the availability of capital for Australian business will bolster their capacity to drive productivity gains through innovation, and generate new employment opportunities across our economy.”
Eugene Snyman, Managing Director at Cambridge Associates’ office in Sydney, Australia, says: “The premium that private equity and venture capital can generate is important for institutional investors, especially when their portfolios are being affected by volatility across other asset classes, as we’ve recently seen in listed markets.”