• Returns

Returns

Private equity has outperformed the majority of asset classes in Australasia, with returns spiking following the initial impact of COVID-19 in the Mar-20 quarter. Since the March 2016 quarter, PE has outperformed the ASX by 75 basis points, achieving 106% returns compared to 30% returns for the ASX 200.

In BDO’s view, the outperformance of PE funds in the past five years relative to the ASX is due to the ASX’s low weighting to the TMT sector (however this is growing), when compared to the higher TMT allocation in PE portfolios. The ASX Tech companies have grown 60% over the last year but they account for a small number of the index and thus the banks and resources impact the ASX returns more.

APAC quarterly Indexed returns:

APAC quarterly indexed returns