Letter submitted to the Times by Simon Walker, Chief Executive BVCA, on the BVCA's research methodology
Dear Sirs,
Patrick Hosking’s comments on the Business pages yesterday (A Blunt Message from Moulton, 27.02.08), which criticized the BVCA’s research, overlook several key facts.
First, the work was carried out for the BVCA by an independent research company, and uses a completely standard and recognized survey methodology.
Second, business organizations including the CBI and IoD, as well as many private sector companies, and the Government – the largest commissioner of research in the country - all use survey research, drawn up on similar lines, to understand their markets.
Third, by its very nature, a survey cannot rule out ‘survivor-bias’ - a company that no longer exists cannot respond to a survey. However, the FTSE 100 and 250 data against which we compare our industry’s results, is also based on companies that are trading and is therefore calculated on the same basis.
I certainly support the view that private equity needs more independent research, and I have never claimed that the current research we have is definitive in every regard. It does though provide a useful snapshot, one that is confirmed by research carried out by Josh Lerner, CMBOR and others.
Yours faithfully,
Simon Walker
Chief Executive BVCA – The British Private Equity and Venture Capital Association
