UK private equity and venture capital funds generated 10-year returns of 14.2% in 2019, outperforming the FTSE 100 and FTSE 250, reveals new research from the BVCA.

The BVCA’s annual Performance Measurement Survey, produced with PwC, reports on the aggregated performance of all independent UK venture capital and private equity funds managed from the UK by BVCA members. The survey covers 117 fund managers and 813 funds. The results are presented net of fees and costs.

In this summary analysis, we find the 10-year return of 14.2% IRR delivered by UK private equity and venture capital is significantly in excess of those generated by the public markets. Over the past decade, the FTSE All-Share returned 8.1%, the FTSE 100 stands at 7.4% and the FTSE 250 produced 12%.

The results can be found here.

Highlights include:

• UK venture capital funds with a post-2002 vintage maintained their strong performance, producing five and 10-year IRRs of 15.1% and 13.2% respectively.
• UK private equity also demonstrated its ability to generate consistently robust returns, with the 10-year IRRs for funds focused on small, mid and large transactions at 14.9%, 12.8% and 14.8% respectively.
• On a since-inception by vintage year basis, the survey shows that since 2008 all vintages have delivered an IRR of more than 14%, with the portfolio as a whole standing at 14.6% as of 31 December 2019.

The full findings of the BVCA’s Performance Measurement Survey will be published later this year, and will contain a range of other performance metrics, including fund multiples, DPI (the total amount distributed to investors as a percentage of paid-in capital) and TVPI (the total amount distributed plus the residual value attributable to investors as a percentage of paid-in capital).

Michael Moore, Director General, BVCA, said:

“UK private equity and venture capital has a long and successful track record of producing strong returns for pension funds and other investors. These latest performance figures are further evidence of how consistently our industry outperforms the public markets, and explains why institutions at both home and abroad continue to invest in the UK.”

For further information, please contact

Tom Allchorne, Director, Communications, BVCA
+44 (0)20 7492 0407
tallchorne@bvca.co.uk

Notes

1. The BVCA has collected annual fund performance data since 1992 and our records go back to 1980. This data is collected directly from BVCA members who manage independent funds in or from the UK, and all returns quoted are net of all fees.
2. The BVCA Performance Measurement Survey is published annually. To read the summary analysis, please click here. The full report will be published later this year.
3. The British Private Equity & Venture Capital Association (BVCA) is the industry body for the UK private equity and venture capital industry. The BVCA has over 750 member firms, including more than 450 fund managers and institutional investors.