Private equity outperforms other asset classes
The British Private Equity & Venture Capital Association (BVCA) has published its Performance Measurement Survey for 2009. The survey shows that venture capital and private equity have outperformed other asset classes over the long term.
The survey includes 470 UK-managed private equity and venture capital funds and finds a ten-year internal rate of return (IRR) of 13.1 per cent for 2009, compared to 3.1 per cent for total pension fund assets and 1.2 % for the FTSE all-share index during the same period.
The survey also shows that investors which commited to private equity during past economic downturns and recovery periods have experienced greater returns on their investment, demonstrated by the returns achieved for funds raised between 1991 and 1995, and 2000 and 2004.
The returns achieved have been stable over the time period, with an annual IRR on a since-inception basis from December 2001 ranging between 13 per cent and 17.3 per cent.
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| Date | 2010-05-31 |
| Source | |
| Geography | European |
| Stage | Venture, Small/mid-cap buyout, Large-cap buyout |
| Type | Market statistics |
| Language | English |
| Document | BVCA Performance Survey |