In its 2014 yearbook, produced with research partner EY, AVCAL found the year ending 30 June 2014 was the “most attractive” year for investors, with 12 private equity-backed IPOs taking place.
“This past year has been a very positive one for our industry,” AVCAL chief executive Yasser El-Ansary said.
“The continuing strong performance of PE-backed companies after they have moved onto the listed market is especially encouraging,” Mr El-Ansary said.
“It underscores the fact that private equity and venture capital managers are focused on creating long-term value for the businesses they invest in, which ensures that subsequent shareholders benefit well into the future.”
AVCAL found private equity fundraising levels are also higher compared with the previous year, with most of the money “flowing towards larger buyouts”.
“It’s positive to see an increase in fundraising, but there is plenty of scope for policy and regulatory changes to be made which would unlock access to more capital for businesses at all stages of growth,” Mr El-Ansary said.
“Private equity and venture capital managers have the ability to catalyse significant new economic activity across a wide spectrum of industry sectors, but to do that there has to be a major boost to the amount of capital committed to the asset class,” he said.
"The allocation of capital into PE and VC funds over recent years has not kept pace with the growth of our compulsory savings pool and the size of our economy,” Mr El-Ansary added.
