Australian PE continues to post steady returns in Q3 2012
7 February 2013
Boston, MA, and Sydney, Australia
The Cambridge Associates LLC Australia Private Equity and Venture Capital Index (C|A Australia Index) rose by 2.90% in the third quarter of 2012, according to the latest quarterly report released by The Australian Private Equity and Venture Capital Association Ltd (AVCAL) today.
For the 12 months ending 30 September 2012, the C|A Australia Index rose by 6.44%. Over the same period, the S&P/ASX 300 Index surged to record a return of 14.46%.
However, over the longer 3- and 5-year horizons the C|A Australia Index outperformed the public equities index, rising by 8.33% and 2.97% respectively on an annualised, net of fees basis compared to the S&P/ASX 300 Index's 1.69% and -3.61% annualised returns over the same horizons.
In the twelve months leading to 30 September 2012, a total of AU$2.2B was distributed back to LPs while $2.3B was drawn down.
Australian Private Equity & Venture Capital Association (AVCAL) CEO Dr Katherine Woodthorpe said, “The Index continues to demonstrate how private equity as a whole has consistently generated stable returns over the long term compared to the more volatile listed markets, on an after-fee basis.”
Eugene Snyman, Managing Director at Cambridge Associates’ office in Sydney, Australia, said: “While the strong performance of both public and private indices in the third quarter is good news to investors overall, we continue to see Australian private equity and venture capital offering greater stability long term.”
Cambridge Associates LLC Australia/AVCAL Index Returns for the period ending 30 September 2012
The Cambridge Associates LLC indices are an end-to-end calculation based on data compiled from 61 Australia private equity and 22 Australia venture capital funds, including fully liquidated partnerships, formed between 1997 and 2012.
1 Pooled end-to-end return, net of fees, expenses, and carried interest.
Sources: Cambridge Associates LLC, Bloomberg L.P., Standard & Poor's, Thomson Reuters Datastream, UBS AG and UBS Global Asset Management.
About Cambridge Associates
Founded in 1973, Cambridge Associates is a provider of independent investment advice and research to institutional investors and private clients worldwide. Today the firm serves over 900 global investors and delivers a range of services, including investment consulting, outsourced portfolio solutions, research services and tools (Research Navigatorsm and Benchmark Calculator), and performance monitoring, across all asset classes.
The firm compiles the performance results for over 5,000 private partnerships and their more than 65,000 portfolio company investments to publish its proprietary private investments benchmarks, of which the Cambridge Associates LLC U.S. Venture Capital Index® and Cambridge Associates LLC U.S. Private Equity Index® are widely considered to be among the standard benchmark statistics for these asset classes.
Cambridge Associates has more than 1,000 employees serving its client base globally and maintains offices in Arlington, VA; Boston; Dallas; Menlo Park, CA; London; Singapore; Sydney; and Beijing. Cambridge Associates consists of five global investment consulting affiliates that are all under common ownership and control. For more information about Cambridge Associates, please visit www.cambridgeassociates.com.
AVCAL is the voice of venture capital (VC) and private equity (PE) in Australia. Our membership includes 54 domestic and international VC and PE managers active in Australia as well as pension/super funds, service providers and other stakeholders.
AVCAL is active in communicating, researching and advocating the significant contribution that VC and PE makes to the broader Australian economy. Australian VC and PE firms manage over $29bn in funds under management. They provide capital and expertise to companies in a range of business life-cycles: start-ups, SMEs and large organisations.
AVCAL VC and PE members focus on enhancing innovation, productivity, entrepreneurial activity and sustainability in the companies they invest in. Australian VC and PE firms back more than 500 companies which employ over 100,000 full-time equivalent jobs.
Since records began in the late 1990s, the industry has distributed around AU$16 billion to its limited partner investors which include pension/super funds, institutions and governments.
- AVCAL – Dr Kar Mei Tang, ph +61 (0)2 8243 7000, email@example.com
- Cambridge Associates - Frank Lentini, Sommerfield Communications, ph +1 212 255 8386, firstname.lastname@example.org
Author: Adrian O’Shannessy, Director, Greenwoods & Herbert Smith Freehills
Author: Dr Kar Mei Tang, Head of Policy and Research, AVCAL