Australian Private Equity And Venture Capital Has Returned 23% Over The Last 12 Months

Robin Carpenter of the United States celebrates as he crosses the finish line to win stage two of the 2014 USA Pro Challenge. Chris Graythen/Getty Images

Australian private equity and venture capital has outperformed the listed market by more than 10 percentage points or 40% in the 12 months to the end of March, according to new data released today.

The Cambridge Associates LLC Australia Private Equity and Venture Capital Index (the CA Australia Index) posted a gain of 23% compared to the S&P/ASX 300 Index, which returned just under 13% over the same period.

The CA Australia Index, a performance benchmark for the private equity and venture capital asset class, gained 3.3% in the first quarter of 2014.

The 3-year, 10-year and 15-year time horizons also showed greater returns from private equity and venture capital compared with listed equities.

Yasser El-Ansary, CEO of the Private Equity and Venture Capital Association, says it’s encouraging to see such a strong performance over the past year.

“One of the most important observations from this latest data is that when you look at long-term returns – which are reported net of fees and costs – across the industry, you see very compelling evidence of why this asset class should be a feature of all diversified portfolios for institutional investors,” he says.

“The returns are a direct reflection of the work done by fund managers in partnering with their portfolio companies, and driving a clear growth strategy which expands businesses and boosts economic and employment opportunities.”

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