As an asset class, Australian private equity and venture capital has consistently outperformed public markets over time with 19 per cent returns over ten years compared to eight per cent for the ASX 300 and five per cent for the ASX Small Ordinaries.
This is because of the active management by PE and VC managers in working with founders and management teams to develop, grow and expand businesses across every sector of the Australian economy.
Global investment firm, Cambridge Associates, recently prepared reports for the Council on the performance of Australia’s PE and VC markets over time. This latest research shows:
- PE and VC investments distributed $35.6 billion to LPs in Australia and New Zealand in 2022.
- PE and VC in Australia have outperformed public markets over the medium to long term with 19 per cent returned to investors over 10 years compared to nine per cent for the ASX 300 and five per cent for the ASX Small Ordinaries index.
- Australia’s PE and VC performance is in line with US and European peers over five,10 and 20 years with stronger performance relative to peers over three years.
Access the full report here