South African private equity sector delivers "vibrant performance"

Aug 07, 2014

The South African private equity sector continues to deliver "a vibrant performance", according to a new report.

The South African private equity sector continues to deliver "a vibrant performance", according to a new report.

The latest RisCura-SAVCA South African Private Equity Performance Report shows that private equity returns for the ten-year period to March 2014 were at
21.2
per cent.

These returns compare with the
19.6
per cent yielded by the JSE’s All Share Index over the same period, and the
20.5
per cent tracked by the JSE Shareholder Weighted Index.

"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," said Erika van der Merwe, CEO of the Southern African Venture Capital and Private Equity Association (SAVCA).

"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," added Rory Ord, head of private equity at RisCura.

According to the report, the resilience of private equity returns are in part owing to the fact that 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.ADNFCR-2976-ID-801740481-ADNFCR