Publication of BVCA Performance Measurement Survey 2009

The BVCA, in conjunction with PricewaterhouseCoopers LLP, has today published its Performance Measurement Survey for 2009 which demonstrates venture capital and private equity's continued outperformance of other asset classes over the long term.

The survey encompasses  470 UK-managed independent private equity and venture capital funds, and finds that the combined ten-year internal rate of return (IRR) stood at 13.1% for 2009, against 3.1% for total pension fund assets and 1.2% for the FTSE all-share over the same ten-year period.

The data also shows that investors which committed to private equity during past economic downturns and recovery periods have achieved superior returns. This is demonstrated by the since-inception returns generated by funds raised during the previous downturns and recovery periods, in particular between 1991 and 1995 and 2000 and 2004.

Returns continue to display notable stability over the long term The annual IRR per annum on a since-inception basis from December 2001 has ranged from a low of 13% to a high of 17.3%, with a 15.9% overall long-term net return to investors as of 31 December 2009. The long term nature of the asset class determines that value is built over a period of time.

Simon Walker, Chief Executive of the BVCA, said:

"Despite the challenges of the past year, private equity and venture capital once again prove their worth to investors. As a long-term asset class it continues to outperform pension funds and the FTSE all-share, putting the industry in great shape for the future.

"The ability to absorb economic shocks has been demonstrated time and again.  Some of the best returns our industry has seen have been generated in downturns - witness the returns generated by those funds raised between 1991 and 1995 and again during the period between 2000 and 2004. As the UK climbs out of recession, investment will be vital to revitalise the economy, making this an excellent time to invest in private equity and venture capital."

Ashley Coups, Private Equity Assurance Leader, PricewaterhouseCoopers LLP, said:

"Despite a challenging 2009 when the severe economic recession resulted in a year of low activity for the industry, as reflected by a significantly lower amount of capital calls and distributions, some positive signs are now emerging.

"Valuations held up due to a combination of recovering comparable valuation multiples and the industry's focus on providing active shareholder support to existing portfolio companies in order to create and protect value in a challenging environment.    Indeed, returns continue to point to increased stability in the long term and UK private equity continues to outperform other asset classes."

For further information please contact:

Tom Allchorne, BVCA: +44 (0)20 7420 1807

Rebecca Mill, PricewaterhouseCoopers LLP: +44 (0)20 7213 5829

Notes to Editors

1. The BVCA - the British Private Equity and Venture Capital Association - is the industry body for the UK private equity and venture capital industry. The BVCA has over 450 member firms, representing the overwhelming number of UK-based private equity and venture capital firms and their advisers

2. PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance, tax and advisory services to build public trust and enhance value for our clients and their stakeholders.  More than 163,000 people in 151 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice.

3. "PricewaterhouseCoopers" refers to PricewaterhouseCoopers LLP (a limited liability partnership in the United Kingdom) or, as the context requires, the PricewaterhouseCoopers global network or other member firms in the network, each of which is a separate and independent legal entity.