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Industry Performance

The BVCA, in association with PwC, publishes the Performance Measurement Survey Report each year which compares private equity and venture capital's performance with other asset classes over different time periods. The statistics in this report are the results of, an annual survey of fund level cash flows and valuations collected from our members.

The Performance Measurement Survey looks at funds which invest in businesses at all stages of the growth lifecycle – from venture capital funds specialising in start-ups to large buyout funds investing in global corporations. The survey captures the performance of UK managed funds, including independent funds, venture capital investments and management buyouts, representing most of the UK private equity and venture capital industry, making the dataset and analysis rich and robust.

Our full Performance Measurement Survey Report takes an in depth look at the data, presenting performance by vintage year, fund type and fund focus. We also publish a short highlights paper and, new in 2021, accompanying data tables in excel for those who love the detail.

We are pleased to be able to contribute to the wealth of data evidencing the positive performance of UK private e capital through this long running study.

Performance Measurement Survey Report 2020: Key findings

This report demonstrates the returns generated for investors by our members to 31 December 2020.

The industry return, measured by the since inception internal rate of return since 1980 is 14.6% p.a. The equivalent measure since 2011 is 19.6% p.a.

These annual returns are equivalent to investors nearly doubling their money, getting a 1.9x return on capital invested over the past decade and 1.8x capital invested since 1980, including the value of unrealised investments as at 31 December 2020.

However, not all funds generate superior returns, and our detailed analysis shows the range of returns to be wide, with some funds ultimately being unprofitable. This underlies regulation requiring that investors be sufficiently experienced or well-advised before investing in private equity or venture capital funds.

The overall resilience of investment returns following the unprecedented turbulence caused by the COVID-19 pandemic gives investors’ confidence that private capital as an industry can continue to deliver in times of disruption.

The Performance Measurement Survey Report 2020 can be found here and the 2020 Performance Measurement Survey Summary flyer can be found here. For those interested in analysing the data, an excel spreadsheet with all the numbers from the survey report can also be found here.

View the full report
 

Performance and Public Market Equivalent Report (PME) 2020

A new report from the BVCA applies two Public Market Equivalent (PME) methodologies to present a comparison of the relative performance of private capital funds managed by BVCA members against the UK public equity market, as represented by the FTSE All-Share Total Return index.

Key points
  • Collectively, private equity and venture capital funds managed by its members have outperformed the UK stock market as represented by the FTSE All-Share, the most comparable index for the range of small, medium and large investments held by UK private equity and venture capital funds, each vintage year since 1991.
  • Since 1991, investors into private equity and venture capital funds have collectively earned a pooled return of 15.1% per annum. These annual returns are equivalent to investors nearly doubling their money, getting a 1.8x pooled return on capital invested, including the value of unrealised investments as at 31 December 2020.
  • A Public Market Equivalent (PME) analysis compares these private capital returns to equivalent investments in a public index. BVCA analysis using two different PME measures shows that the returns generated for investors by funds managed by BVCA members have been better than those of equivalent investments in the FTSE All-Share index every year since 1991, with the exception of 2006 where the private market returns were higher on one measure and equal on the other.

View the full report

Read our latest reports on industry performance

Further information

FOR FURTHER INFORMATION PLEASE CONTACT THE BVCA

 +44 (0)20 7492 0400

 research@bvca.co.uk