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
New research has shown that investing in alternative assets and using active management has, to this point, delivered strong results for Australian super funds.
Australia’s $4 trillion superannuation industry is fundamentally reshaping the nation’s external accounts, setting the stage for a more sustainable current account surplus despite weaker commodity markets.
Rest has expanded its portfolio of renewable energy infrastructure by supporting a Victorian solar farm and battery project.
Economic growth was weaker than expected, once again highlighting an economy largely sustained by population growth and government spending.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
93.34 3 y p.a(%)
2
Global X GlobalX FANG+ ETF
37.15 3 y p.a(%)
3
GAM LSA Private Shares AU I
33.96 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.68 3 y p.a(%)
5
Plato Global Alpha A
28.73 3 y p.a(%)
