Responding to the publication of 'Private Equity and Insolvency', Simon Walker, chief executive of the BVCA, said:
"Insolvencies have been a blight on the corporate landscape during the recession, and private equity and venture capital have not been immune.
What this academically robust and intellectually rigorous report shows is just how much stronger private equity-backed companies are than other types of businesses. Not only are they less likely to fail, they have over twice the debt recovery rate of publicly-owned companies.
The report follows similar findings by our counterparts in the US. Last week The Private Equity Council found that private equity-backed companies fared significantly better than comparable businesses between 2008 and 2009.
It is private equity's hands-on approach which will define it in the coming years. This drive for operational excellence, alongside private equity's superior corporate governance model and its ability to choose the best deals, underscores the vital role our industry will play in the recovery of the economy."
FOR FURTHER INFORMATION PLEASE CONTACT
Tom Allchorne, BVCA: +44 (0)20 7420 1807
Notes to editors:
The British Private Equity and Venture Capital Association (BVCA) is the industry body for UK private equity and venture capital. The BVCA has over 450 member firms, representing the overwhelming number of UK-based private equity and venture capital firms and their advisers.
Private Equity and Insolvency