BVCA Private Equity and Venture Capital Performance - BVCA admin
BVCA Private Equity and Venture Capital Performance - BVCA admin
BVCA Private Equity and Venture Capital Performance - BVCA admin
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Highlights<br />
Continued<br />
are raised before 2007 produced a net return<br />
of 15.3% for investors since their inception to<br />
December 2010. (N.B. Funds raised from 2007<br />
onwards are not included in the calculation of<br />
since-inception returns as these funds are still<br />
at the early stage of their life cycle, <strong>and</strong> their<br />
investment return during this period does not<br />
provide a meaningful indication of their<br />
performance at liquidation.)<br />
Since-inception returns vary across different<br />
investment stages. The pre-1996 vintage funds<br />
included in this report are classified into the<br />
following investment stages: early stage,<br />
development, Mid-MBO, Large MBO <strong>and</strong><br />
Generalist (which invest in companies at all<br />
stages). At 18.2% per annum, large MBO funds<br />
raised before 1996 have slightly outperformed<br />
Mid-MBO <strong>and</strong> Generalist funds on a sinceinception<br />
basis. Funds raised from 1996<br />
onwards are classified into four investment<br />
stages: <strong>Venture</strong>, Small MBO, Mid-MBO <strong>and</strong><br />
Large MBO, to reflect the development in the<br />
industry. Both Small <strong>and</strong> Large MBOs have<br />
performed well, with an annual IRR of 17.9%<br />
<strong>and</strong> 17.8% on a since-inception basis,<br />
respectively. Mid-MBOs have shown a small<br />
decline in their performance since the financial<br />
crisis, although their overall level of return<br />
remains solid (13.2% per annum as of<br />
December 2010). The performance of the<br />
post-1996 venture funds still suffers from the<br />
slump in technology company valuations that<br />
began in 2000. However, as shown in the later<br />
4 <strong>BVCA</strong> <strong>Private</strong> <strong>Equity</strong> <strong>and</strong> <strong>Venture</strong> <strong>Capital</strong> <strong>Performance</strong> Measurement Survey 2010<br />
Since-inception performance by investment stage <strong>and</strong> subcategory to December 2010 (% pa)<br />
% pa<br />
25<br />
20<br />
15<br />
10<br />
5<br />
0<br />
-5<br />
Pre-1996 vintage funds<br />
Early<br />
Stage<br />
9.2<br />
Development<br />
10.2<br />
Mid-<br />
MBO<br />
15.8<br />
Large<br />
MBO<br />
18.2<br />
Generalist<br />
Subtotal<br />
pre-1996<br />
15.8 15.6<br />
1996 vintage funds onwards<br />
<strong>Venture</strong> Small Mid- Large Subtotal<br />
UK Non- Pan- Technology Non- Gr<strong>and</strong> total<br />
MBO MBO MBO 1996<br />
onwards<br />
UK European Technology all funds<br />
-0.3<br />
17.9<br />
13.2<br />
17.8<br />
15.2<br />
part of the report, purely commercial VC funds<br />
raised after the dotcom bubble are in a better<br />
shape with some showing good potential.<br />
Subcategories (all vintages)<br />
13.9<br />
16.6<br />
18.0<br />
0.6<br />
16.4<br />
15.3
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