Private equity beats listed market: AVCAL
Australian private equity and venture capital beat out the listed market in the 12 months to 31 March, according to data from the Australian Private and Venture Capital Association Limited (AVCAL) and Cambridge Associates.
The Cambridge Associates LLC Australia Private Equity and Venture Capital Index (the CA Australia Index) gained 23 per cent against the S&P/ASX 300 Index's 13 per cent over the same one-year period.
The CA Australia Index — an independent performance benchmark for the private equity and venture capital asset class — gained 3.3 per cent in the first quarter of 2014.
The three year returns stood at 12.27 per cent, the 10-year return was at 10.61 per cent and the 15-year return was at 11.69 per cent. However the five-year return was lower than the listed market, coming in at 11.82 per cent, against 13.2 per cent.
"The strong returns experienced in Australia rewarded investors who stayed allocated and invested in the asset class," managing director at Cambridge Associates' office, Sydney, Eugene Snyman said.
"In particular, many institutional investors who followed a disciplined manager selection and implementation strategy achieved a net of fees return in excess of 500bps above listed markets over the long-term."
Recommended for you
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
Responsible investment performance concerns have lessened as the market hits $1.6 trillion in AUM, according to RIAA’s annual report, but greenwashing fears among asset managers are on the rise.