INVESTORS

Investors in VC&LSPE funds (vehicles) are generally institutional investors such as resident pension funds, non-resident sources, governments and business.

There were $19,550m committed to VC&LSPE funds (vehicles) as at 30 June 2016. Resident pension funds (38%) were the largest source of funds, in terms of committed funds to VC&LSPE funds (vehicles).


VC&LSPE FUNDS (VEHICLES)

There were 224 VC&LSPE funds (vehicles) in 2015-16. VC&LSPE funds had net assets of $9,482m as at 30 June 2016, a decrease of $191m from 30 June 2015.

As at 30 June 2016, 124 of the 224 VC&LSPE funds were participating in a government program, an increase of 22 investment funds from 2014-15.

The majority of returns on investment to investors is through exits from investments. The value of exits through trade sales was $761m in 2015-16.

The most common valuation method used by VC&LSPE funds (vehicles) in 2015-16 was Directors’ valuation (132 funds), followed by cost value/book valuation (53 funds), and independent valuation methods (39 funds).


INVESTEE COMPANIES

At the end of the 2014-15 financial year there were 693 active VC&LSPE investment deals valued at $8,802m. During the 2015-16 financial year $1,207m was invested in new VC&LSPE investment deals, and an additional $338m of follow-on investment was made to existing VC&LSPE investment deals. Following revaluations and exits of investee companies during the year, there were 723 continuing VC&LSPE investment deals valued at $9,213m at the end of the 2015-16 financial year.

Investee companies in the LBO/IPO/Listing stage accounted for $3,744m or 41% of the total value of investments at the end of the 2015-16 financial year.



The majority of the total value of investments was in VC&LSPE investee companies with head offices in New South Wales and Victoria (39% and 15% respectively), while overseas investee companies accounted for 19% of total investment in 2015-16.

In 2015-16, the Health care and social assistance industry had the highest proportion of VC&LSPE investment (19%), followed by the combined Trade and accommodation industries (16%).
When analysed by activity, as defined by the Standard and Poor's Global Industry Classification Standard, the Retail, services and real estate group of activities attracted the largest share of investment, with $3,471m or 38% of total investment as at 30 June 2016. This was followed by the Manufacturing and transport group of activities, with $2,515m or 27%.