Another strong quarter for PE & VC returns

23rd Nov 16

Author: Kosta Sinelnikov, Senior Research Analyst, AVCAL

AVCAL and Cambridge Associates today released the latest Australian PE and VC performance figures for the period ending 30 June 2016. 

The figures reveal that the performance of our industry, and the net-of-fee returns going back to investors, remain consistently strong amid financial market uncertainty both in Australia and overseas. Over the one-year and three-year periods, Australian PE and VC funds returned 12% and 19%, respectively. Over the longer term, Australian PE and VC generated 10% (over 10 years) and 12% (over 15 years) – such returns are compelling for long-terms investors like superannuation funds, especially at a time when yields in other asset classes remain low.

Compared to listed markets (namely the S&P/ASX 300 Index), the Australian PE & VC Index has outperformed by over 5% across all time horizons. That outperformance was strongest for shorter time horizons, at 11% over the one-year period, and 12% over the three-year period. Compared to the fixed income asset class, PE and VC returns were even stronger.

Over the last four years, the average quarterly return for Australian PE and VC funds was 4%, with only one quarter seeing negative performance over that time period, which reflects the consistency of performance for these funds.

We’d like to thank Cambridge Associates for their ongoing support and work in compiling the performance data.

The Q2 2016 reports are available here.