Media & News

Media Release: South African private equity a competitive long term investment

Private equity remains a competitive long-term investment

Johannesburg, 6 May. Returns on private equity investments remain competitive in relation to the returns on South African listed equity.

According to the latest RisCura-SAVCA South African Private Equity Performance Report, investments in private equity funds yielded an annualised rate of return of 22,1% over the ten years to the fourth quarter of 2013. This is in line with a return of 22,2% over the ten years to the third quarter of last year and compares with total returns of 19,5% and 20,8% generated by the JSE All Share Index over these respective periods. The JSE’s Shareholder Weighted Index (SWIX) yielded 20,4% in the ten years up to 2013.

Erika van der Merwe, CEO of the Southern African Venture Capital and Private Equity Association (SAVCA), says favourable returns on private equity investments over the longer term illustrate that the asset class is worthy of a place in any diversified investment portfolio. “Both local and international institutional investors have recently shown increased interested in private equity. SAVCA’s latest Member Directory for 2014, launched this week, showcases the South African private equity firms and funds that are not only deserving of such attention from investors, but also contributes to job creation and economic growth in the country.”

“Developed-market institutional investors – having seen pleasing outperformance of private equity relative to listed equity in their home countries – are now seeking out returns in new geographies. Private equity funds across Africa have benefited from this international shift in focus,” said Siyabonga Nhlumayo, SAVCA Director, at the launch of the Member Directory. SAVCA currently has 84 fund-manager members and more than 40 associate members.

About SAVCA: The Southern African Venture Capital and Private Equity Association (SAVCA) is the industry body and public policy advocate for private equity and venture capital in South Africa, representing about R130 billion in assets under management. SAVCA promotes Southern African private equity by engaging with regulators and legislators on a range of matters affecting the industry, providing relevant and insightful research on aspects of the industry and creating meaningful networking opportunities for industry players.

Mari Blumenthal
H+K Strategies South Africa
Tel: +27 11 463 2198
Cell: +27 72 452 1772 / +27 82 381 0635

Erika van der Merwe, CEO: SAVCA