
Australia’s private equities continue to outperform public
Private equity in Australia outperformed public markets in the first quarter of 2011, continuing a trend that dates back nearly a year. The Australia Private Equity and Venture Capital Index (APEVC Index), published by Cambridge Associates, delivered annualized returns of 7.7% over a one-year horizon for the three-month period ended March 31 versus 3.8% for the S&P/ASX 300 Index.
Private equity also proved stronger over three- and five-year horizons, with returns of 1.5% and 4.8% compared to 1.1% and 3.2% for the S&P/ASX 300 Index. Public equities only outperformed their private counterparts over a 10-year horizon.
In US dollar terms, the APEVC Index posted one-, three- and five-year annualized returns of 21.3%, 7.5% and 13.0%, respectively.
"Based upon our analysis we estimate the Australian Private Equity and Venture Capital Index now represents approximately 70% of the dollars raised by institutional-quality Private Equity and Venture Capital firms in Australia, adding credence to the accuracy of the performance data," said Eugene Snyman, managing director at Cambridge Associates' office in Sydney, Australia.
Katherine Woodthorpe, CEO of the Australian Private Equity and Venture Capital Association (AVCAL), added: "Private equity and venture capital are not only a high-performing asset class over medium- to longer-term time horizons, but are less volatile than many may think, as the latest index figures attest."
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