Private equity deal activity supported by 22% return to investors in 2013

New data released today by the Australian Private Equity & Venture Capital Association Limited (AVCAL) reveals that private equity and venture capital funds in Australia posted returns of 22% in the 12 months to December 31, 2013. The figure outperforms the ASX 300 Index by over 200 basis points.

The Cambridge Associates LLC Australia Private Equity and Venture Capital Index (the CA Australia Index) – the leading independent performance benchmark for the asset class – reflected a significant pick-up in performance in

the final quarter of 2013, gaining nearly 10% compared to the ASX 300 Index which rose 3% in the same quarter.

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.

“This is a good set of numbers,” said AVCAL chief executive Yasser El-Ansary. “The index has shown strong returns for the last six consecutive quarters, and the results from this most recent period are especially positive.”

“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,” said El-Ansary.

“The 10- to 15-year returns demonstrate how investors with long-term horizons have been the big winners from this asset class,” El-Ansary said.

The performance benchmark report is available on the AVCAL website.