Buyout fundraising reached £35.09bn. Pension funds are the largest institutional investor in UK buyout funds contributing 40%, followed by sovereign wealth funds (12%) and fund of funds (11%).
Growth capital reached £5.97bn. Pension funds were the largest contributor at 28% followed by fund of funds at 9%.
Venture capital fundraising reached £2.15bn. Fund of funds contributed 20% to the total VC fundraising amount, followed by private individuals (15%), government agencies (13%) and pension funds (12%).
Buyout investment increased by 11% year-on-year to £18.77bn. The number of companies backed decreased by 4% to 218. Mega buyouts accounted for 57% of the buyout market, followed by large buyouts at 25%. Small buyouts ended 2020 with £278m with 85 companies backed. Mid-market saw a slight year-on-year decrease of 5% at £3.2bn investing in 89 companies.
Growth capital investments increased by 7% to £3.87bn. 555 companies were backed, a 19% increase year-on-year.
Venture capital investment increased by 2% year-on-year to £1.68bn with 883 companies backed, an 8% increase. Seed investments increased to £121m in 2020. Start-up contracted to £160m, an reduction of 24%. Early stage investments decreased 3% year-on-year in size to £843m. Later stage venture investments increased by 12% to £522m.
Buyout divestments represented 80% by amount at cost and around 29% by number of companies of all exits in 2020.
Growth divestments represented 13% of all exits by amount at cost and 43% by number of companies.
Venture capital comprised around 5% of all divestments with 141 companies. The most prominent exit route was write offs, which represented 32% of number of companies divested in 2020.
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