POWERED BY MOMENTUM MEDIA
Private equity outperforms benchmark
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.
Recent data compiled from 64 Private equity fund and 25 venture capital funds reveals significant new deal activity in the final quarter of last year has helped the asset class deliver returns 200 basis points ahead of the ASX 300 Index.
The Cambridge Associates LLC Australia Private Equity and Venture Capital Index (the CA Australia Index) 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.
“We’re seeing significant new deal activity within the private equity industry at the moment, and we expect that many funds will maintain a focus on identifying new investment opportunities where growth can be unlocked through the injection of capital and skills,” AVCAL chief executive Yasser El-Ansary said.
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, according to AVCAL.
“The 10- to 15-year returns demonstrate how investors with long-term horizons have been the big winners from this asset class,” he said.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
In this latest edition, Anna Shelley, CIO at AMP, shares the fund’s approach to current market conditions and where it continues to uncover key opportunities.
The mega fund has announced a $2.2 billion investment in a leading data centre platform, bringing its global real assets portfolio to nearly $60 billion.
In this latest edition, Australian Retirement Trust’s head of global real assets Michael Weaver explains the fund’s approach to finding new opportunities as it surpasses $300 billion in funds under management.
Fund managers remain hopeful for a Chinese revival story despite the “disappointing” stimulus package announced this week.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
