StartupSmart discusses Australian PE investment returns
24th May 13
Private equity and venture capital investment in Australian businesses provides better returns than shares over the long term, according to the index by AVCAL and investment advisors Cambridge Associates. The index shows private equity provided returns of 6.88% and 2.83% over three and five years, while the S&P/ASX 300 share market index produced returns of 2.8% and -1.81% respectively.
In the year to December 31, however, shares outperformed private equity returns, with the S&P/ASX 300 jumping by 19.74%, while private equity gained 5.78%.
AVCAL chief executive Katherine Woodthorpe tells StartupSmart that private equity and business made good partners because both were focused on long term outcomes.