BVCA Publishes Report on Investment Activity
The British Private Equity & Venture Capital Association (BVCA) has today published its Report on Investment Activity 2012, an annual study of the BVCA's membership.
The results of the survey show a mixed picture for the UK private equity and venture capital industry. Total investment activity fell to £12.3bn in 2012 while fundraising increased to almost £6bn. In a positive development for the UK's start-up community, venture capital investment rose by almost 44% year-on-year.
Highlights include:
- BVCA member firms invested £12.3bn globally in 2012, down from £18.6bn in 2011;
- Despite the headline fall, the number of companies benefitting from investment from UK private equity and venture capital remained at around 1,000 for the third year running;
- Venture capital investment, in the UK and overseas, rose from £492m in 2011 to £708m in 2012;
- Regionally, London and the South East continue to dominate the landscape, attracting 58% of the total UK investment. The East of England, North East, and Wales saw considerable increases in investment levels at £424m, £410m, and £159m respectively while investments fell by £247m and £12m in Scotland and Northern Ireland respectively.
- Fundraising increased to nearly £6bn, an uplift of around a third from 2011;
- There were over 750 exits in 2012, with trade sales the largest single route of exit for BVCA members.
Commenting on the report, Tim Hames, Director General of the BVCA said:
"In the face of prolonged economic uncertainty and a double-dip recession in the UK at the start of 2012, it is perhaps unsurprising that we saw a decline in overall investment levels this year. However, the fact that the number of companies benefitting from investment from our members remained at over 1,000, as well as the increase we saw in terms of fundraising, provides genuine cause for optimism for the industry."
Notes to editor
- To view the Report on Investment Activity please click here.
- 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 500 member firms, representing the vast majority of UK-based private equity and venture capital firms and their advisers.