- Wednesday, 14 August 2013 | Staff Reporter
Australian private equity notched steady returns in the first quarter of 2013, and although the sector significantly trailed equities for the period, it continues to outperform over most longer-term horizons.
A quarterly report from the Australian Private Equity and Venture Capital Association (AVCAL) found the Cambridge Associates LLC Australia Private Equity and Venture Capital Index (the C|A Australia Index) gained 2.36 per cent in the first quarter of 2013.
Although the S&P/ASX 300 Index rose 8.04 per cent over the same period, private equity is still in front over three-, five- and 15-year horizons. The C|A Australia Index posted annualised net-of-fees returns of 7.18 per cent, 3.71 per cent and 8.99 per cent respectively over those timeframes, AVCAL stated.
However, equities outperformed private equity on a 10-year basis by 10.21 per cent to 8.37 per cent on an annualised basis.
AVCAL chief executive Katherine Woodthorpe said the first quarter of 2013 saw the highest level of distributions to limited partners in the last five quarters, and the second highest level since records began.
“Despite the challenging environment for exits, it is encouraging to note that private equity is generally delivering good returns to investors, particularly with realisations being top of mind for many limited partners at the moment,” Ms Woodthorpe said.
The managing director of Cambridge Associates’ Sydney office, Eugene Snyman, said moving forward “it will be interesting to see how the continued strength of the equities markets will impact exits, perhaps leading to even greater returns for many private equity investors”.
Latest from InvestorWeekly
- AMP Capital completes NAB House acquisition
- Emerging markets in a strong position: Aberdeen
- Appetite for post-trade automation grows
- ASX to offer RMB settlement services
- Capital Group appoints new RE
- Protecting against sequencing risk: Ability Capital
- AMP Capital offloads Sydney property
- RI Academy forms two international partnerships
- New York Life acquires Dexia AM
- Antares Capital launches income fund
- A weather forecast for 2014
- Is Asian turbulence a win for China?
- Why Detroit’s honest self-renewal is a lesson for Japan
- Volatility means opportunity for fixed-income investors
- US Fed likely to stick to existing policy
- Asian bonds offer value after Fed-induced sell-off
- Convertible bonds: solid foundations are needed when reaching for the upside
- ING DIRECT urges third parties to prepare for Basel changes
- A straight-forward channel
- Crystal balls and consistent returns
- Perpetual adds to credit and fixed income team
- Bennelong Wealth Partners appoints CIO
- Equity Trustees creates investment management role
- Mercer appoints client service leader
- Morningstar Australasia appoints joint CEOs
- UniSuper expands leadership team
- WA Super appoints chair
- Acorn Capital appoints microcaps analyst
- Towers Watson appoints global investment head
- Centuria appoints senior facilities manager