PRIVATE EQUITY Holding its own

The headline return from SA private equity stands up well against the listed markets. Over 10 years to September 30 2014 the internal rate of return has been 18,5%, almost matching the JSE all share index’s 18,8% in what has been an extraordinary decade for equity returns.

But timing is critical when it comes to investing in private equity. Funds that started before 2005 have done substantially better than those started since. The average annual returns of funds started between 2000 and