Asset Management BVCA Private Equity and Venture Capital Performance Measurement Survey 2008 A survey of independent UK-based funds that raise capital from third-party investors The British Private Equity and Venture Capital Dynamics PricewaterhouseCoopers LLP Capital Association (BVCA) 9th Floor Hay’s Galleria 1st Floor North 9 Colmore Row 1 Hay’s Lane Brettenham House Birmingham London Lancaster Place B3 2BT SE1 2RD London WC2E 7EN Tel: 0121 200 8800 Tel: 020 7583 5000 Fax: 0121 200 8899 Fax: 020 7804 1001 Tel: 020 7420 1800 Fax: 020 7420 1801 www.capital-dynamics.com www.pwc.com
[email protected] www.bvca.co.uk Contents Overall performance Foreword 02 Introduction – performance through sustainable investing 04 Highlights 06 The UK private equity industry 12 Analysis: Venture capital returns 14 Returns by investment stage – IRR and multiple 16 Returns by vintage year – IRR and multiple 20 Returns by vintage year (1996 onwards) and investment stage – IRR and multiple 24 Range of returns Range of returns (IRR and multiple) since inception – investment stage and subcategory 26 Range of returns (IRR and multiple) since inception – vintage year 29 Range of returns (IRR and multiple) since inception – investment stage (1996 onwards and vintage year) 32 Capital raised and realised By investment stage and subcategory 35 By vintage year 36 Appendices Appendix I Methodology 38 Appendix II Glossary of terms 40 Appendix III Principal comparators and asset class overview 42 Appendix IV Range of returns (IRR) medium to long term 46 Appendix V Since