THE latest survey of private equity and venture capital shows that investor interest in the asset class is growing — and no wonder.Returns on private equity investments have grown by a compound annual 18.5% over the past decade, beating the JSE’s all share index by a generous margin.There has been a healthy flow of funds back to investors thanks to successful exits by private equity funds from investments in a variety of companies.Private equity has provided an alternative to a JSE listing or bank funding for companies wanting to raise capital to acquire and expand.That helps to deepen SA’s capital market and to add dynamism to the funding of private sector investment.It also provides a more diverse basket of assets that institutional investors such as pension funds can invest in.In 2015 a record R29bn of new funding flowed into the private equity industry, up from R11.8bn in the previous year, according to a survey compiled by the Southern African Venture Capital Association (Savca...
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