BOSTON, MA and SYDNEY, AUSTRALIA--(Marketwire -08/15/12)- The Cambridge Associates LLC Australia Private Equity and Venture Capital Index (C|A Australia Index) rose by 7.80% (net of fees) in the twelve months leading to 31 March 2012, according to the latest quarterly report released by The Australian Private Equity and Venture Capital Association Ltd (AVCAL) today.
The C|A Australia Index outperformed the S&P/ASX 300 Accumulation Index (ASX 300) by 14.07% over the same period.
For the quarter ending 31 March 2012, the C|A Australia Index rose by 1.43%, marking the fifth consecutive quarter of positive returns. Nine of the last ten quarters have now had positive returns (the sole exception being Q4 2010 which saw the index fall by 0.82%). Similarly, nine of the last ten years have also recorded positive returns (the exception being the year leading to Q1 2009).
The C|A Australia Index's medium to long term results remained steady, with annualised returns of 9.49%, 3.18% and 7.38% over the 3-, 5- and 10-year horizons respectively. In contrast, the ASX 300's returns fluctuated between 11.35%, -2.10% and 6.93% over the corresponding horizons.
In the twelve months leading to 31 March 2012, a total of AU$2.6B was distributed back to LPs while $2.1B was drawn down. Over this period, distributions peaked in Q4 2011 before falling again due to a deceleration in exit activity in Q1 2012.
Australian Private Equity & Venture Capital Association (AVCAL) CEO Dr Katherine Woodthorpe said, "Private equity returns continue to do well and we are encouraged by the relative stability of those returns in contrast with the more volatile listed markets. The longer-term performance, in particular, provides a strong argument for why private equity should be in any well-managed institutional portfolio with a long-term time frame."
Eugene Snyman, Managing Director at Cambridge Associates' office in Sydney, Australia, said: "The consistency of Australian PE performance can benefit Institutional Investors looking to address short-term public market volatility. This performance is in line with what we are seeing in developed markets around the world, and we expect Australian PE to continue attracting investor interest."
The report is published on the AVCAL website www.avcal.com.au.
Cambridge Associates LLC Australia/AVCAL Index Returns for the period ending 31 March 2012 Index 1-Quarter 1-Year 3-Years 5-Years 10-Years ---------------------------------- --------- ------ ------- ------- -------- Australia Private Equity & Venture Capital Index (A$) (1) 1.43 7.80 9.49 3.18 7.38 Australia Private Equity & Venture Capital Index (US$) (1) 2.41 7.52 24.19 8.83 13.72 S&P/ASX 300 Index 8.58 (6.27) 11.35 (2.10) 6.93 S&P/ASX Small Ordinaries Index 14.98 (8.57) 17.93 (3.85) 7.52 UBS Australia Bank Bill Index 1.12 4.88 4.43 5.39 5.45 UBS Australian Composite Bond Index 0.78 10.00 6.49 7.27 6.57