The Cambridge Associates LLC Australian Private Equity and Venture Capital Index (CA Australian Index) generated a 23 per cent gain in the one-year period, while the ASX 300 returned just under 13 per cent.
The CA Australia Index, a benchmark for the performance of the private equity and venture capital asset class, showed returns were also above those from listed equities for 3-year, 10-year and 15-year terms.
AVCAL chief executive Yasser El-Ansary said the long-term returns, which are net of fees and costs, show “very compelling evidence of why this asset class should be a feature of all diversified portfolios for institutional investors”.
“Our asset class has a long track record of generating above-normal returns for super funds and other investors over many years,” said Mr El-Ansary.
“The returns are a direct reflection of the work done by fund managers in partnering with their portfolio companies, and driving a clear growth strategy which expands businesses and boosts economic and employment opportunities.”
Cambridge Associates’ managing director of Australia, Eugene Snyman, said the strong returns experienced in Australia rewarded investors who stay allocated and invested in the asset class.
“In particular, many institutional investors who followed a disciplined manager selection and implementation strategy achieved a net of fees in excess of 500 basis points above listed markets over the long-term,” said Mr Snyman.
