Google
RSS Feeds RSS | Views on ITInews | contact | terms of use | privacy 
 


Editorial Categories:

FINANCIAL SERVICES
ADVISERS & BROKERS
BANKING & BONDS
BUSINESS MANAGEMENT
COLUMNISTS
CONSUMER AFFAIRS
CRIME & FRAUD
ECONOMY & GLOBAL
EDUCATION & TRAINING
ESTATES & WILLS
HEALTHCARE INSURANCE
INDUSTRY & LEGISLATION
INSURANCE
INVESTING
LEGAL AFFAIRS
LIABILITY INSURANCE
LIFE INSURANCE
MARKETING
PEOPLE & COMPANIES
POLITICS
PROPERTY
RETIREMENT PROVISION
REVIEWS
ROAD ACCIDENT FUND
SHARES & UNIT TRUSTS
SHORT-TERM INSURANCE
TAXATION
TECHNOLOGY
VIEWS & LETTERS


Forthcoming Events:

No Upcoming Events


Available Recruitment:

No Vacancies Listed...


Save by getting insurance quotes


Your Editor, Brent WilsonInforming Consumers and Financial Advisors since 1988 | Click Here to Advertise
Press Offices > Associations

South African Venture Capital and Private Equity Association
Press Office Feature : South African Private Equity sustains its outperformance

Company: South African Venture Capital and Private Equity Association
Author:Mari Blumenthal
Email:[email protected]
Posted:04 Aug 2014

 Email this article Comment on this Article  Print this article

Benefiting from growth across the African continent

The latest RisCura-SAVCA South African Private Equity Performance Report confirms that the private equity asset class continues to deliver a vibrant performance, and moreover one that compares favourably with listed equity.

Private equity returns for the ten-year period to March 2014 were at 21,2% (annualised internal rate of return, net of fees).

These returns compare with the 19,6% yielded by the JSE’s All Share Index over the same period, and the 20,5% tracked by the JSE Shareholder Weighted Index. Private equity trailed the FINDI, which returned 23,0%.

“These latest numbers confirm the returns-boosting role of private equity in a diversified institutional portfolio, and especially so in a global context where institutional investors are seeking sustainable avenues for shoring up performances."

"The performance is also one of the reasons why South African-based private equity funds have reported success in their recent fundraising programmes,” says Erika van der Merwe, CEO of the Southern African Venture Capital and Private Equity Association (SAVCA).

The SAVCA-KPMG Private Equity Industry Survey 2014 shows that South African funds raised R27.3bn in 2013, helping to take funds under management in the industry to a new high of R162,2bn.

“We are seeing a new wave of private equity funds being formed and expect more deal flow in the near future as capital is deployed by these funds. This is in the context of a market that has seen recovery since the 2008 financial crisis,” says Rory Ord, head of private equity at RisCura.

“This recovery – and indeed resilience – is evidenced by the fact that that private equity returns are holding their ground against JSE-listed equity returns, despite the listed market hitting record highs,” Ord says.

The resilience of private equity returns are in part owing to the long-term focus of the industry, and its strategic and active partnerships with the companies in which fund managers invest.

Moreover, South African private equity fund managers increasingly set their sights on benefiting from growth across the African continent, whether by way of cross-border deals that add to their portfolio of investments, or through providing their investee companies with the capital needed for operational expansion into new territories.

“Institutional investors in various markets now recognise the valuable exposure that private equity can give them to African growth, in a way that ensures they have a positive, developmental impact in the region,” Van der Merwe says.

“For these institutional investors, whether pension funds, development finance institutions, sovereign wealth funds or family offices, this is an opportunity to do good while reaping financial benefits.”

Note: Private equity returns are calculated as an internal rate of return (IRR) and are reported net of fees. Returns for listed equity are calculated as a compound annual rate of return.

Comments:
There are no comments at this stage. Be the first to comment!
Please Login To Comment On an Article - Click here To Login

ITInews invites comments at the foot of each of its articles in which readers can respond freely - anonymously if they wish - to various topical issues and industry debates. However, comments submitted by readers that are defamatory or deemed, by the editors, to be racist or obscene will be deleted from the database. Furthermore, ITInews's editor would like to caution potential posters on its websites that while it welcomes robust debate, it will not hesitate to make the IP addresses of the authors of such defamatory statements available to the authorities, in the event of a court order compelling them to do so.



Get car, home, life and business insurance quotes in 3 easy steps


South African Venture Capital and Private Equity Association


Join us today

More from South African Venture Capital and Private Equity Association
AVCA and SAVCA sign Memorandum of Understanding
Associations formalise collaboration over training, networking and research projects for Africa
Private Equity players invest in Africa infrastructure boom
Exposure to an asset class that is not easily found elsewhere
SA Private Equity industry looks to infrastructure, education and healthcare deals in 2013
Investment directed at expanding existing profitable and high-growth business
The South Africa private equity industry is adding value to the market
In 2005 the private equity industry invested R4,9 billion in 761 investments
SAVCA’s new chairman calls for heightened dialogue with private equity industry
Private equity industry plays vital role in in the development of a country’s economy


Archived Articles featuring this company ...


Insurance Quotes


Car Insurance Quotes
Household Insurance Quotes
Business Insurance Quotes
Funeral Insurance Quotes
Life Insurance Quotes

Read the InsuranceQuotes Blog
ITM Website Design Cape Town
Copyright © 2005 - 2015 ITInews Online Publications (Pty) Ltd. All rights reserved Insurance Times & Investments Online and ITInews. ..::ISSN 1995-1256::.. No part of the materials including graphics or logos, available in this Web site may be copied, photocopied, reproduced, translated or reduced to any electronic medium or machine-readable form, in whole or in part, without specific permission from ITInews Online Publications (Pty) Ltd. Distribution for commercial purposes is prohibited.