
The survey found that the combined ten year internal rate of return (IRR) for private equity and venture capital stood at 14.9 per cent for 2014 ? nearly double the figure returned by UK pension fund assets and the FTSE All-Share, at 7.8 per cent and 7.6 per cent respectively.
It also marked the highest performance for venture funds since the financial crisis, and the first time that since-inception returns for pre-2002 funds have been positive since the BVCA began measuring their performance. The report, which demonstrated the performance of independent UK private equity funds, was conducted in conjunction with PwC and Capital Dynamics. John Dwyer, PwC deals leader, said: ?Private equity has had its downs as well as ups over the last ten years, and returns from different years tell their different stories.? Reviewing the decade as a whole,?Dwyer?indicated that ?PE has shown real resilience in comfortably outperforming pension assets and the listed sector”. He added that “more recent, post-crisis vintages have performed well and successful exits over the last few years have shown how the industry can respond to a downturn, which is encouraging for investors?. The since-inception return metric ?most accurately reflects the performance of private equity? as it measures from the actual beginning of a fund as opposed to solely recent years. The BVCA added that it was important to consider the long-term returns when attempting to compare private equity with other asset classes, rather than just looking at shorter-term measures. Read more on venture capital:- The European VC investment trends that took place in Q1 2015
- A look at the most active UK equity investors in the seed, venture and growth space during 2014
- North East holds its own in number of private equity and venture capital-backed businesses
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