BVCA Private Equity and Venture Capital ... - BVCA admin

32 BVCA Private Equity and Venture Capital Performance Measurement Survey 2011
Capital raised and realised
Continued
Across all vintage years and investment stages
from when BVCA records commenced in 1980
to the present day (of December 2011), BVCAmember
funds have raised £179bn for investment.
The fundraising environment was difficult in
2011, owing to ongoing concerns centred on
domestic economic weakness and Europe, but
equally many fund managers did successfully
attain their soft and hard caps. With the industry
having much dry powder left to invest and the
fact that this report only considers funds which
have called capital from investors, explains why
the amount raised in 2011 (£3.5bn) remains
lower than the past few years. 1
The tables overleaf on capital raised and
realised show the ratio of distributions made to
paid-in capital, the residual value of the funds
to paid-in capital and the total value created to
paid-in capital. In most cases, capital is paid
into funds over a number of years as suitable
investment opportunities arise.
Across all vintage years, BVCA funds have
raised, £179bn for investment. Of the capital
raised, £142bn has been drawn down to date.
This indicates an amount of around £37bn
that is available for the industry to invest.
Of the capital paid in, £117bn has been
returned to investors and £87bn is retained
in the portfolio.
1 Please note that the capital raised figures reported in this report are not comparable with the capital raised figures in the BVCA
Investment Activity Report for the same period. Firstly, this report examines only the UK-based unlisted funds that raise capital
from the third party investors, whereas the Investment Activity Report covers not only these funds but also VCTs and listed
private equity vehicles. Secondly, this report only includes those funds which have made their first capital call from their investors.
Furthermore, it is the total amount raised by these funds that is reported, not just the amount raised in a particular year (2011 in
this case). The Investment Activity Report, on the other hand, considers only the amount raised in the relevant year irrespective
of the timing of the first capital call. For example, consider Fund A, which started fundraising in 2009, raised £200 million in 2009,
and £100 million in 2010, and made a capital call in July 2010. The Investment Activity Report 2010 would have included only
the £100 million raised in 2010 (the £200 million raised in 2009 should have been covered by the 2009 report). The Performance
Measurement Report 2010 would have included this fund for the first time in its 2010 vintage sub category and reported the total
amount raised, i.e. the £300 million (the fund would not have been reported in Performance Measurement Report 2009).