The British Private Equity and Venture Capital Association has published its annual Performance Measurement Survey summary for 2012. The Performance Measurement Survey, produced in association with PwC and Capital Dynamics, encompasses 510 UK-managed independent private equity and venture capital funds, and finds that the combined ten-year internal rate of return (IRR) stood at 15 percent for 2012, against 8.3 percent for total pension fund assets and 8.8 percent for the FTSE All-Share over the same period.
The BVCA has today published its annual Performance Measurement Survey summary for 2012.
The Performance Measurement Survey, produced in association with PwC and Capital Dynamics, encompasses 510 UK-managed independent private equity and venture capital funds, and finds that the combined ten-year internal rate of return (IRR) stood at 15% for 2012, against 8.3% for total pension fund assets and 8.8% for the FTSE All-Share over the same period.
Private equity and venture capital fund performance also proved resilient during the economic downturn as shown by the five-year IRR. UK private equity funds generated an annual return of 6.0%, exceeding the 2.5% generated by the FTSE All-Share and the 3.8% returned to holders of Pension Fund Assets.
Other highlights include:
– Small and mid-market buyout funds delivered returns in excess of 15% for since-inception and 10 year IRR;
– Venture capital funds, particularly those that began investing post-2002, returned IRRs of 3.6% on a since-inception basis to investors in 2012;
– The best returning fund vintages following the Dot-Com bubble originated from the years 2002 and 2004 as measured on the since-inception metric with IRRs of 25.5% and 25% per annum, respectively;
– Since inception fund performance recorded an IRR of 13.9%, marginally down on last year but still broadly in line with the 15% average over the last decade.
Joe Steer, Research Director at the BVCA, said:
“Despite the current economic malaise, both globally and domestically, UK private equity continues to deliver great returns to investors. This year’s one-year performance of 11.5% IRR is evidence of a productive year in the face of challenging headwinds, and the since-inception returns remain strong and stable – highlighting an asset class whose robustness makes it an essential component of many investors’ portfolios.”
Marissa Thomas, partner and head of private equity at PwC said:
“This report demonstrates once again how the private equity industry is demonstrating its value as a long-term investment and providing investors with stable and persistent returns.”
FOR FURTHER INFORMATION PLEASE CONTACT
Joe Steer, BVCA: +44 (0)20 7420 1816
Tom Allchorne, BVCA: +44 (0)20 7420 1807
Notes to editors:
1. To view the Performance Measurement Survey please click here.
2. The British Private Equity and Venture Capital Association (BVCA) is the industry body for the UK private equity and venture capital industry. The BVCA has approximately 500 member firms, representing the vast majority of UK-based private equity and venture capital firms and their advisers.
3. PwC firms help organisations and individuals create the value they’re looking for. We’re a network of firms in 158 countries with close to 169,000 people who are committed to delivering quality in assurance, tax and advisory services.
Deborah Harkin | Communications Manager
BVCA – The British Private Equity and Venture Capital Association | Brettenham House | Lancaster Place | London | WC2E 7EN | +44(0)20 7420 1867 | www.bvca.co.uk