Credit reference agency Veda was the best performing new listing on the ASX for the 2014 financial year.
The 2014 Australian Private Equity and Venture Capital Association (AVCAL) and EY Year Books says Veda gained 58% above its offer price as at June 30.
The current price for Veda, whose December 2013 float was backed by Pacific Equity Partners, is $2.35, more than 80% above the offer price of $1.25.
The last year featured 12 private equity-backed initial public offerings (IPOs) in Australia, marking the most active year on record.
Yasser El-Ansary, AVCAL’s Chief Executive, says the continuing strong performance of private equity-backed companies after they’ve moved onto the listed market is encouraging.
“It underscores the fact that private equity and venture capital managers are focussed on creating long-term value for the businesses they invest in, which ensures that subsequent shareholders benefit well into the future,” he says.
Other notable IPO performers’to the end of June:
- OzForex, divested by The Carlyle Group and Accel Partners, which was up 32%
- iSentia, divested by Quadrant Private Equity, which was up 16%
- Burson Auto Parts, divested by Quadrant Private Equity, which was up 16%.
Private equity and venture capital funds posted an after-fee return of 22% to investors in the 2014 financial year, beating the listed market by almost 5%.
In the 12 months to June, the industry distributed a record $3.5 billion back to investors, such as superannuation funds, sovereign wealth funds and corporate investors.
Bryan Zekulich, EY Oceania Managing Partner for Private Equity, says there’s no question that the return to more normalised market conditions has enabled private equity and venture capital to shine through and outperform the ASX-listed benchmark.