Australian private equity and venture capital funds returned 18.4% after fees last year.
The result outperformed the ASX by more than six-fold. The S&P/ASX 300 index gained only 2.8% over the same 12 months to December.
“High growth companies will have the greatest impact on future jobs and the Australian economy, and this is where private equity and venture capital play such a critical role in providing both funding and expertise,” says Yasser El-Ansary, the CEO of the Venture Capital Association Limited (AVCAL).
“The success of these companies also creates excellent returns for private equity and venture capital fund investors, such as superannuation funds.”
El-Ansary says private equity and venture capital funds are on average returning more than 20% a net of fees over the last three years, as this chart shows.