UK private equity at record investm

Private equity firms in the UK experienced a record level of investment activity last year, totalling £9.68bn, according to the British Venture Capital Association's (BVCA) report on Investment Activity 2004, produced in association with PricewaterhouseCoopers. The 2004 figure represents an increase of 52% on the previous year's figure of £6.36bn. The BVCA's study also shows that 1,566 companies were financed worldwide - the highest figure since 2001. In the UK investments increased by 31% to £5.34bn. By contrast, fundraising decreased from £8.89bn in 2003 to £3.23bn in 2004, accounted for by the current stage of the fundraising cycle. 2004 saw mainly mid-market funds being raised and a large increase in fund size is expected in 2005. According to the report, 45% of all companies backed were in the expansion category - requiring funds for, among other things, acquisitions and working capital. Investments in early-stage companies fell slightly from £190m in 2003 to £188m in 2004, while the total amount invested in buyout deals increased by 58% to £3.78bn. The BVCA's Performance Measurement Survey was also published; it indicated that UK private equity outperformed total UK pension funds assets and the principle stock market indices in periods of over three, five and 10 years. Net returns generated by private equity were 14.8% over a 10-year period; 9.4% over five years; and 11.5% over three years.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• UK / Ireland