The recent RisCura-Savca South African Private Equity Performance Report reveals that the industry’s returns are nothing short of spectacular. Precluded from investing in the asset class, asset management and institutional investors have missed an opportunity to get a slice of the consistent, healthy returns the industry has achieved over the past decade.

In line with global norms, SA’s private equity has surpassed equities, bonds and other asset classes for several years.

As an asset class, there are key differences between private equity and the listed equities market. Typically, private equity fund investments have a lower correlation in market performance to the listed equities markets. Investments made in the private equity market are relatively illiquid, with lock-in periods often longer than three years, in most cases around five years and often longer, particularly in the early seed stages.

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