Connect with us

Private Equity

PRESS RELEASE| SA PRIVATE EQUITY REMAINS FAVOURABLE RELATIVE TO LISTED MARKET

The latest RisCura-SAVCA South African Private Equity Performance Report reveals that the country’s private equity industry has again outperformed listed equity over the medium-term, as of December 2019. The 2019 fourth quarter report, which tracks a representative basket of private equity funds in South Africa, shows outperformance across all three listed benchmarks over the five-year…

The post PRESS RELEASE| SA PRIVATE EQUITY REMAINS FAVOURABLE RELATIVE TO LISTED MARKET appeared first on SAVCA.

Avatar

Published

on

The latest RisCura-SAVCA South African Private Equity Performance Report reveals that the country’s private equity industry has again outperformed listed equity over the medium-term, as of December 2019.

The 2019 fourth quarter report, which tracks a representative basket of private equity funds in South Africa, shows outperformance across all three listed benchmarks over the five-year period. Over the three-year and 10-year periods, private equity underperformed across all three listed benchmarks.

The direct alpha earned by private equity relative to the ALSI TRI, FINDI TRI and the SWIX TRI is 2.9%, 3.8% and 3.9%, respectively, over the five-year period. At Q3 2019, these results were comparable at 4.6%*, 3.4%* and 5.1%*, respectively.

SAVCA CEO, Tanya van Lill, says that South African private equity continues to deliver value for investors. “Results for the first and second quarters of 2020 will be telling, but we believe that private equity will remain resilient relative to the listed market.”

According to the report, the 10-year ZAR IRR remained flat at 8.8%* in Q4 2019 as compared to Q3 2019, and declined by 90 basis points as compared to Dec18 (9.7%*). The five-year ZAR IRR declined from 10.1%* in Q3 2019 and 10.5% in Q4 2018 to 8.8% in Q4 2019. The three-year IRR improved by 40 bps to 4.4% in Q4 2019 from 4%* in Q3 2019 and Q4 2018.

The 2007-2008 vintage funds have seen an improvement in their performance since last quarter, ending the quarter at an IRR of 8.7%, compared to 8.6%* in Q3 2019 and remained flat as compared to Q4 2018. The 2010-2012 vintage funds reported an IRR of 3.2%, down from 4.1% in Q3 2019 and 4.3% in Q4 2018. The 2013-2015 vintage funds improved from an IRR of 9.4%* in Q3 2019 and 9% in Q4 2018 to 12.4% in Q4 2019.

The USD IRR improved over the three-year, five-year and 10-year periods, reaching 3.6%, 4.4%, and 1.7%, respectively, up from 0.8%*, 3.7%*, and 1.3%*, respectively in Q3 2019. The USD IRRs across all periods improved due to the ZAR strengthening by approximately 7.7% against the USD from Sep19 to Dec19.

Monwabisi Zikolo, a senior private equity analyst at investment firm RisCura, says that despite significant headwinds, the prospects for private equity investments remain favourable.

*The Dec18 and Sep19 IRR’s have been restated due to a realisation that was double-counted.

-ENDS-

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 Southern Africa. SAVCA represents about  R184 billion in assets under management through 170 members that form part of the private equity and venture capital ecosystem. SAVCA promotes the Southern Africa venture capital and private equity asset classes on a range of matters affecting the industry, providing relevant and insightful research, offering training on private equity and creating meaningful networking opportunities for industry players.

For more, visit our website: http://www.savca.co.za/

Follow us on Twitter @SAVCAssociation and LinkedIn

About RisCura

RisCura is a global, independent investment advisor and financial analytics provider that offers investment decision support in developed and emerging markets. RisCura provides a wide range of services to the largest African investor base in listed and unlisted investments on the continent. The company services institutional investors, asset managers, hedge funds and private equity firms with over USD200 billion in assets under advice.

For more, visit our website: www.riscura.com

Source: https://savca.co.za/press-release-sa-private-equity-remains-favourable-relative-to-listed-market/savca-in-the-news/

Private Equity

Alternative Investments/Real Estate: Housing Market Demand Is “Insane”

Speaking to CNBC on Power Lunch, Glenn Kelman, CEO of real estate brokerage Redfin (NASDAQ: RDFN), said he expected the current boom conditions in the housing market to last well into next year. He attributed the high demand to affluent professionals looking for remote homes as well as low interest rates. Also, he thinks some sellers will put their properties on the market only after the presidential election.

Avatar

Published

on

Alternative Investments/Real Estate: Housing Market Demand Is “Insane”

https://platodata.net/wp-content/uploads/2020/10/alternative-investments-real-estate-housing-market-demand-is-insane.jpg

Redfin CEO Glenn Kelman says the boom could last into next year.

Speaking to CNBC on Power Lunch, Glenn Kelman, CEO of real estate brokerage Redfin (NASDAQ: RDFN), said he expected the current boom conditions in the housing market to last well into next year. He attributed the high demand to affluent professionals looking for remote homes as well as low interest rates. Also, he thinks some sellers will put their properties on the market only after the presidential election. (CNBC)

Kelman: Too good to last forever

“This level of demand is absolutely insane. I would expect it to last into 2021, at least,” Kelman said.

Recent data from the National Association of Realtors shows up the strength in the housing market.

Existing home sales shot up 9.4% in September beating expectations. Even though the median purchase price of a home rose approximately 15% year over year, there is just a 2.7-month supply of for-sale homes, showing tight market inventory conditions.

The 30-year fixed-rate mortgage averaged 2.80% for the week ending Oct. 22, down from 2.81% in the previous week and 3.75% a year ago, according to the Freddie Mac Primary Mortgage Market Survey. Therefore, mortgage rates crept even lower in the latest week.

However, “there’s no way it can last forever,” Kelman warned of the bullish conditions.

Canada: Off the charts

Meanwhile, at the northern neighbor, home sales activity in September is described as “off-the-charts.”

Housing data released by the Canadian Real Estate Association (CREA) last week showed a nationwide year-over-year increase in sales of 45.6%.

This was a new all-time monthly record for the third month in a row.

“This is starting to sound like a broken record (about records being broken), but Canadian home sales and prices set records once again in September … as they did in July and August,” said Shaun Cathcart, senior economist at CREA, in a statement.

Real Estate ETFs in the U.S.

The year-to-date performance of some real estate ETFs is shown below:

iShares U.S. Home Construction ETF (ITB)              +24.61%

SPDR S&P Homebuilders ETF (XHB)                          +20.83%

Vanguard Real Estate Index Fund ETF                      -13.91%

It may be noted that despite the boom conditions in housing, real estate ETFs and stocks have declined in recent days.

According to Barron’s, this may be due to yields on the 10-year and 30-year Treasuries moving higher in recent weeks.

Other reasons could be fears of inflation ticking up in the future amidst an improving economic situation.

Nevertheless, the view is that interest rates are likely to remain low for longer. So demand may remain strong.

“Part of what is fueling this boom is that the economy has just split into two and rich people are able to access capital almost for free, so, of course, they’re going to use that money to buy homes,” said Redfin’s Kelman.

Related Story:   Mortgage Rates Set Another Record Low; Real Estate ETFs Could Benefit

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

Shape

Latest Alternative Investment News

Source: https://dailyalts.com/alternative-investments-real-estate-housing-market-demand-is-insane/

Continue Reading

Private Equity

Asda’s new owner EG Group seeks new leadership ahead of IPO – report

EG Group is owned by the billionaire Issa brothers and the private equity firm TDR Capital, who teamed up for a £6.8 billion takeover of Asda last month

Avatar

Published

on

UK grocer Asda Group’s new owner EG Group is looking for a new chairman and independent directors as it prepares for a £10bn initial public offering, The Timesreports.

EG Group is owned by the billionaire Issa brothers and the private equity firm TDR Capital, who teamed up for a £6.8 billion takeover of Asda last month.

The move comes after Deloitte resigned last week as the company’s auditor because of concerns over the group’s governance and lack of internal controls, according to the publication.

A decision on candidates will be taken before the end of this year, although roles haven’t been finalised yet as the company is in the process of deciding whether to float in the UK or the US, The Times reports.

Write to Barcelona editors at barcelonaeditors@dowjones.com

From Dow Jones Newswires

Source: https://www.penews.com/articles/asdas-new-owner-eg-group-seeks-new-leadership-ahead-of-ipo-reports-20201023

Continue Reading

Private Equity

Lone Star agrees £630m deal to buy UK’s McCarthy & Stone

The American private equity firm is expected to back the strategy of Britain’s biggest retirement housebuilder to build more homes for rent

Avatar

Published

on

McCarthy & Stone said Friday, 23 October, that it has agreed to a £630m all-cash takeover by Lone Star Real Estate Fund VI.

Under the offer, accepting shareholders of the London-listed retirement-community builder will get 115 pence in cash for each share held, a 39% premium to its closing share price of 83 pence on Thursday, 22 October.

“The all-cash offer represents a compelling and attractive opportunity for shareholders to realise and crystallise their investment in McCarthy & Stone in the near term and also provides a meaningful premium to the prevailing share price notwithstanding the backdrop of the wider risks posed by the political and macro-economic environment,” McCarthy Chairman Paul Lester said.

Write to Ian Walker at ian.walker@wsj.com

From Dow Jones Newswires

Source: https://www.penews.com/articles/lone-star-agrees-630m-deal-to-buy-uks-mccarthy-stone-20201023

Continue Reading
Saas52 mins ago

Saas52 mins ago

Saas52 mins ago

Saas52 mins ago

Saas52 mins ago

Saas52 mins ago

Saas52 mins ago

Saas52 mins ago

Saas52 mins ago

Saas52 mins ago

Press Releases1 hour ago

Tous pour la 5G, la 5G pour tous

Press Releases1 hour ago

ProChile Announces New U.S. Commercial Representation

Press Releases1 hour ago

Rand McNally Announces New Ownership

Press Releases1 hour ago

Worldwide Thermal Energy Storage Industry to 2025 – Featuring Abengoa, Baltimore Aircoil & Brightsource Energy Among Others

Press Releases1 hour ago

Kellogg Company Declares Regular Dividend of $0.57 per Share

Press Releases2 hours ago

A New Must-Have Eyeshadow Palette for Those Too Busy to Worry About Their Makeup

Press Releases2 hours ago

Upscale Restaurant and Bar Dahlia Mexican Grill Opens in Historic Building, Downtown San Mateo

Press Releases2 hours ago

The MDS Foundation’s 3rd Annual MDS Awareness Walk is Going Virtual in Boston and Around the Globe on MDS World Awareness Day, October 25

Venture Capital2 hours ago

Tech Firms Leapt Into Remote Work. Now Comes the Hard Part

Press Releases3 hours ago

Advance America: The Quick and Dirty Guide to Understanding Credit Scores

Press Releases3 hours ago

Can an Installment Loan Help With Outstanding Rent Payments?

Press Releases3 hours ago

More People than Ever are Giving the Gift of Child Safety Locks from Kidzlock

Saas4 hours ago

7 Guidelines on Selling Some of Your Stock in a VC Round

Saas4 hours ago

The Top 5 Challenges to Starting a Successful SaaS Company

Saas4 hours ago

Saas4 hours ago

Saas4 hours ago

Saas4 hours ago

Saas4 hours ago

Saas4 hours ago

Saas4 hours ago

Saas4 hours ago

Saas4 hours ago

Saas4 hours ago

Private Equity5 hours ago

Alternative Investments/Real Estate: Housing Market Demand Is “Insane”

Press Releases5 hours ago

EPRI Joins International Consortium to Overcome Barriers to Renewable Energy Integration

Press Releases5 hours ago

Wilmington Seniors Can Explore Medicare Options From Home: Free Online Webinars Offered By Wilmington Health

Press Releases5 hours ago

Drug Study Offers New Hope to Patients with Both Chronic Kidney Disease and Type 2 Diabetes

Press Releases5 hours ago

BiondVax Announces Topline Results from Phase 3 Clinical Trial of the M-001 Universal Influenza Vaccine Candidate

Press Releases5 hours ago

Rockpoint Group and The Swig Company Complete Sale of 300 Lakeside in Oakland

Trending