moments with our investment gurus
Private equity – closer to the real economyRian Smit
21 October 2020
The SA ‘investable’ private equity universe
Source: SAVCA
The private equity marketSouth African private equity assets under management by focus of the fund
Sources: Smallcaps.co.za, JSE
The private equity market
Leading private equity companies
Sources: Iress, Momentum Investments
Lower volatility and outperformance
0,80 0,85 0,90 0,95 1,00 1,05 1,10 1,15 1,20 1,25 1,30
Aug‐16 Feb‐17 Aug‐17 Feb‐18 Aug‐18 Feb‐19 Aug‐19
INDI ALSI Capped SWIX PE
Indices compared to the Momentum Private Equity Portfolio return to 31 December 2019
Momentum Private Equity Portfolio
Sources: Iress, Momentum Investments
0,80 0,85 0,90 0,95 1,00 1,05 1,10 1,15 1,20 1,25 1,30
Aug‐16 Feb‐17 Aug‐17 Feb‐18 Aug‐18 Feb‐19 Aug‐19 Feb‐20 Aug‐20
INDI ALSI Capped SWIX Momentum Private Equity Portfolio
Cannot escape the macro economicsIndices compared to the Momentum Private Equity Portfolio return to 30 September 2019
Sources: Iress, Momentum Investments
5 500
6 000
6 500
7 000
7 500
8 000
8 500
9 000
9 500
Dec‐19 Jan‐20 Feb‐20 Mar‐20 Apr‐20 May‐20 Jun‐20 Jul‐20 Aug‐20 Sep‐20
FTSE/JSE All‐Share Index total return
Public markets rallied off March lowsBut became more expensive
Sources: Iress, Momentum Investments
10
12
14
16
18
20
22
24
26
28
01‐Jan‐20 01‐Mar‐20 01‐May‐20 01‐Jul‐20 01‐Sep‐20
FTSE/JSE All‐Share Index PE ratio
Public markets rallied off March lowsBut became more expensive
Sources: Iress, Momentum Investments
Private equity still expected to outperformThe Momentum Private Equity Portfolio compared to the FTSE/JSE All‐Share Index and the Industrials Index
1,0
1,5
2,0
2,5
3,0
3,5
4,0
Jul‐03 Jul‐05 Jul‐07 Jul‐09 Jul‐11 Jul‐13 Jul‐15 Jul‐17 Jul‐19
Momentum PE INDI ALSI Momentum Private Equity Portfolio
Private equity summary
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