Private equity and venture capital boost super funds

4 June 2015
| By Jassmyn |
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Long-term investors in Australian private equity and venture capital have been given a boost thanks to a 22 per cent net return for the sector in 2014, a private equity and venture capital firm, and an investment advice provider said.

The Australian Private Equity and Venture Capital Association Limited (AVCAL) found the sector delivered positive returns for all but one of the last 15 years.

"The last two years saw returns of over 20 per cent net of fees for private equity and venture capital, which demonstrates the value our sector generates for investors," AVCAL chief executive, Yasser El-Ansary, said.

"The double-digit returns that have been generated over the longer term also demonstrate that a meaningful allocation to the sector can significantly boost performance for super funds, sovereign wealth funds, or other investors with a long-term horizon."

Managing director at Cambridge Associates in Sydney, Eugene Snyman said the strong returns were driven by record distributions back to investors.

"Long-term investors in Australian private equity and venture capital have benefited from strong outperformance over listed markets for the five, 10, and 15 year periods."

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