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 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 accompanying data tables in excel for those who love the detail, and a separate methodology paper that sets out different methods for measuring the absolute and relative performance of private equity and venture capital.
In 2024 we received responses from 85 members out of a total eligible pool of 104 members, a response rate of 82%.
We are pleased to be able to contribute to the wealth of data evidencing the positive performance of UK private capital through this long running study.
Performance Measurement Survey
Report 2024: Key findings
This report demonstrates the returns generated for investors by our members to 31 December 2024.
Our latest data shows, that since 2005 the industry has collectively delivered an internal rate of return of 12.0%. This annual return is equivalent to investors getting a 1.74x return on capital invested over the last two decades.
Over a 10-year horizon, UK private capital funds delivered an internal rate of return of 15.8% p.a. compared to 6.2% p.a. for the FTSE All Share and 8.0% p.a. for the MSCI Europe Index.
Alongside absolute return metrics, the report also presents the findings of a Public Market Equivalent (PME) analysis which compares the performance of private equity and venture capital funds to public equities as represented by the FTSE All Share and MSCI Europe indices – chosen because of their similar range of investment sizes, sectors and geographies.
The PME analysis using both the Capital Dynamics PME + and the KS-PME approach shows that private equity and venture capital has consistently outperformed public markets since 2005.
If investors in private capital since 2005 had made an equivalent investment in the FTSE All Share or the MSCI Europe Index, they would have achieved a return of 6.6% p.a. or 7.1p.a. % respectively, both significantly lower than the 12.0% p.a. internal rate of return collectively achieved by private equity and venture capital.
The Performance Measurement Survey Report 2024 can be found here. For those interested in analysing the data, an excel spreadsheet with all the numbers from the report can also be found here, alongside additional granular analysis by investment stage, subcategory and vintage year going back to 1980. The Performance Measurement Survey Methodology paper can be found here.
Performance Measurement Survey Review Board
The BVCA Performance Measurement Survey Review Board provides guidance and advice to the BVCA Research team. The Group comprises leading practitioners from within the GP and LP communities and representation from academia - all recognised for their experience and insight into the venture capital and private equity industry.