NZVCA Media Release Q1 2017 Data

Cambridge Associates Comment – NZVCA Media Release

Q1 2017 Data

October 2017

Australasian private equity and venture capital funds delivered a 18% net return, in New Zealand dollars, for the 3-years ending 31 March 2017, according to data provided by Cambridge Associates.  Investors have enjoyed attractive returns driven by strong distributions in excess of $3.0 billion back to investors during the past year.  Australasian private equity and venture capital funds have strongly outperformed local listed market comparisons for three-year, five-year and 10-year periods.  The 15-year annualised return on Australasian private equity and venture capital was 11 per cent compared with a public market equivalent 5 per cent for the S&P ASX 300, a value-add of 600 basis points.  A similar theme of strong returns and record distributions has occurred across global private equity and venture capital markets over the same 15 year period.

Eugene Snyman, Managing Director at Cambridge Associates, presented the firm’s research findings and performance analysis of 94 Australasian private equity and venture capital funds during the NZVCA Annual Private Equity and Venture Capital Conference held in Queenstown on 19 October. 

Eugene Snyman said: “The returns generated by Australasian private equity and venture capital funds makes for a compelling opportunity for private investments to add meaningful value to portfolios of long-term investors who are seeking to build portfolios capable of generating the alpha required to achieve their overall investment objectives.  Rigorous investment and operational due diligence coupled with discipline in manger selection continue to be paramount to successfully investing in private equity and venture capital.”    

In the analysis by Cambridge Associates, private equity and venture capital investments in New Zealand companies represented well diversified sector exposure, but relative to local listed markets, had greater exposure to healthcare, consumer and information technology sectors.  Private equity and venture capital investments into mid-market New Zealand companies have been particularly strong, generating net returns of 25%. 

About Cambridge Associates

Cambridge Associates is a global investment firm founded in 1973.  The firm helps more than 1,000 endowments, foundations, pension plans, and private clients maximize their impact on the world by building custom investment portfolios aimed at generating outperformance across all asset classes.  Working alongside its early clients, among them leading university endowments, the firm pioneered the strategy of high-equity orientation and broad diversification, which since the 1980s has been a primary driver of performance for institutional investors. Cambridge Associates delivers a range of services, including outsourced CIO; investment consulting; and access to investment research and tools across the continuum of global asset classes.  

Cambridge Associates has more than 1,200 employees and maintains offices in Boston; Arlington, VA; Beijing; Dallas; London; Menlo Park, CA; New York; San Francisco; Singapore; Sydney; and Toronto. Cambridge Associates consists of five global investment consulting affiliates that are all under common ownership and control. For more information, please visit www.cambridgeassociates.com.