BUSINESS MAVERICK: Covid-19 may improve private equity returns

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BUSINESS MAVERICK: Covid-19 may improve private equity returns By Ruan Jooste

might provide some comfort to investors facing the carnage of capital markets. It shows that private equity in the country continues to outperform listed equity over the short and medium-term, as of September 2019.

SAVCA CEO Tanya van Lill says that South African private equity has managed to remain resilient despite high volatility and low growth. In US dollar terms the IRR weakened over the three-year and 10-year periods, reaching 4.3% and 2.0%, respectively, down from 10.3% and 3.0%. Over the five-year period, however, the IRR improved from 5.2% in quarter two to 5.5% in the third quarter of 2019.

“We expect to see increased capital flowing into sectors such as healthcare and infrastructure, and these investments have demonstrated their ability to generate financial returns, while also providing crucial products and services.” Green believes it could speed up the Fourth Industrial Revolution, including advances in AI and mobile supercomputing.

 

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hmm! private equity might be a bad thing, huh!

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