AVCAL, Cambridge benchmark Australian fund performance

The first of what will be a quarterly performance index shows private equity performing strongly against listed markets.

The Australian Private Equity & Venture Capital Association has partnered with US investment advisor Cambridge Associates to introduce an  index to benchmark the performance of Australian private equity.

The first quarterly performance index shows Australian private equity and venture capital has generated “attractive” returns over a one-, three- and five-year periods as of 30 June last year when compared with the S&P/ASX 300 Index and the S&P/ASX Small Ordinaries Index. While private equity performed badly against the UBS Australian Composite Bond Index and UBS Australia Bank Bill Index over a three-year period, it showed more than double the returns of the other two over a one-year period.

“We are very pleased to see the data reflecting how Australian private equity as a whole has performed very well despite challenging market conditions,” Katherine Woodthorpe, chief executive of AVCAL, said in the statement.

The index was generated through an end-to-end calculation based on data compiled from 30 Australian private equity and 13 Australian venture capital funds, including fully liquidated partnerships, formed between 1998 and 2010, according to a statement.

This is not the first time Cambridge Associates has partnered with a national private equity association to provide an industry benchmark. The Boston-headquartered advisory firm has also previously partnered with the US’ National Venture Capital Association to provide similar benchmark data.