Australian Bureau of Statistics

Rate the ABS website
ABS Home > Statistics > By Catalogue Number
ABS @ Facebook ABS @ Twitter ABS RSS ABS Email notification service
5678.0 - Venture Capital and Later Stage Private Equity, Australia, 2012-13 Quality Declaration 
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 13/02/2014   
   Page tools: Print Print Page Print all pages in this productPrint All RSS Feed RSS Bookmark and Share Search this Product

ANALYSIS OF RESULTS


INVESTORS

As at 30 June 2013, $19,754m was committed to direct VC&LSPE investment vehicles, $5,225m of which was committed via fund of funds investment vehicles.

The following graph presents drawdown investment for VC&LSPE investors by type of investor for 2012-13. The largest source of funds in terms of drawdowns for VC&LSPE investment vehicles was provided by resident pension funds, with 57% of total drawdowns.

DRAWDOWN FROM INVESTORS BY INVESTOR TYPE, Percentage of total investment in VC&LSPE vehicles, 2012-13
Graph: DRAWDOWN FROM INVESTORS BY INVESTOR TYPE, Percentage of total investment in VC&LSPE vehicles, 2012-13



VC&LSPE MANAGERS AND INVESTMENT VEHICLES

There were 122 active VC&LSPE managers who were managing 231 VC&LSPE investment vehicles. Of the 122 active VC&LSPE managers, 45% reported that they prefer to invest in Venture Capital investments only, 21% prefer Later Stage Private Equity investments only and 34% prefer to invest in both VC and LSPE investments (refer to paragraph 12 of the Explanatory Notes regarding the stages of investment). The following table shows the breakdown of managers and vehicles by preferred category of investment.

VC&LSPE INVESTMENT VEHICLES AND MANAGERS, by focus of fund - 2011-12 and 2012-13

VC&LSPE vehicles
VC&LSPE managers

2011-12
VC no.
102
54
LSPE no.
99
27
Both VC&LSPE no.
41
36
Total no.
242
117
2012-13
VC no.
93
55
LSPE no.
93
26
Both VC&LSPE no.
45
41
Total no.
231
122
% Change
VC %
-9
2
LSPE %
-6
-4
Both VC&LSPE %
10
14
Total %
-5
4



The stage of investment preferred by VC&LSPE fund managers was dependant on the value of the fund assets. VC&LSPE fund managers with less than $10m in total assets mostly focused on VC investments only (63%), while VC&LSPE managers with more than $25m in total assets preferred to focus on LSPE investments (36%). VC&LSPE managers received income in the form of management fees ($250m).

FUND MANAGER AND ASSETS, by fund managers preferred stage of investment(a) - 2012-13

VC only
LSPE only
Both VC & LSPE
Total
no.
no.
no.
no.

Less than $10m
35
4
17
56
$10m to less than $25m
11
6
5
22
More than $25m
9
16
19
44
Total
55
26
41
122

(a) Refer to paragraph 12 of the Explanatory Notes.


VC&LSPE investment vehicles had net assets of $9,334m as at 30 June 2013, a rise of $255m from 30 June 2012. Most VC&LSPE investment vehicles (52%) were trusts.

As at 30 June 2013, 96 of the 231 VC&LSPE investment vehicles were participating in a government program, an increase of seven investment vehicles from 2011-12.

Most return on investment to investees is through exits from investments. The value of exits through trade sales, Initial Public Offers (IPOs) and buybacks was $1,249 in 2012-13.

SELECTED ADDITIONS AND EXITS TO INVESTMENTS IN INVESTEE COMPANIES
Graph: SELECTED ADDITIONS AND EXITS TO INVESTMENTS IN INVESTEE COMPANIES


VC&LSPE investment vehicles used various valuation methods in 2012-13 (refer to paragraphs 14 to 18 of the Explanatory Notes regarding valuation basis). Directors’ valuation was the most frequently used method (141 VC&LSPE investment vehicles), followed by cost value/book valuation (62 investment vehicles), and independent valuation methods (28 investment vehicles).


INVESTEE COMPANIES

When interpreting these data please see the cautionary note in paragraphs 22 and 23 of the Explanatory Notes.

At the beginning of the 2012-13 financial year there was $7,652m invested in 804 VC&LSPE investee companies. During the 2012-13 financial year a further $919m was invested in new VC&LSPE investee companies, and an additional $203m of follow-on investment was made to existing VC&LSPE investee companies. Following revaluations and exits of investee companies during the year, the 720 VC&LSPE investee companies were valued at $8,189m at the end of the 2012-13 financial year.

Investee companies in the late expansion stage accounted for $3,475m or 42% of the total value of investments at the end of the 2012-13 financial year.

VALUE OF INVESTMENT, By investee stage (a)

(a) Refer to Glossary for investee company definitions


In 2012-13, the majority of investment was in VC&LSPE investee companies with head offices in New South Wales and Victoria (42% and 21% respectively), while offshore investee companies accounted for 16% of total investment.

Due to the ANZSIC06 classification being used for the first time (refer to paragraph 19 of the Explanatory Notes for further details), a break in series was applied for all output classified by industry. Furthermore industry groupings were reviewed to maximise the amount of data released. Although the groupings may look similar to previous issues, the data is not comparable.

In 2012-13 the combined Trade and accommodation industries had the highest value of VC&LSPE investment with $1,376m followed by the combined Finance, administrative and support services industries, and the Manufacturing industry, with $1,360m and $1,064m respectively.

PERCENTAGE VALUE OF INVESTMENT, by Industry of investee (a), 2012-13

(a) Based on combined Australia and New Zealand Standard Industrial Classification 2006. Refer to paragraph 19 and 20 of the Explanatory Notes.

When analysed by activity, as defined by the Standard and Poors Global Industry Classification Standard (refer to paragraph 21 of the Explanatory Notes), the Retail, services and real estate group of activities attracted the largest share of investment, with $3,138m or 38% of total investment as at 30 June 2013. The Manufacturing and transport group of activities, with $2,428m, also maintained a large share of the total investments (30%).

PERCENTAGE VALUE OF INVESTMENT, By activity of investee (a)

(a) Based on Standard and Poors Global Industry Classification. Refer to paragraph 21 of the Explanatory Notes.


Bookmark and Share. Opens in a new window

Commonwealth of Australia 2014

Unless otherwise noted, content on this website is licensed under a Creative Commons Attribution 2.5 Australia Licence together with any terms, conditions and exclusions as set out in the website Copyright notice. For permission to do anything beyond the scope of this licence and copyright terms contact us.