BVCA - British Venture Capital Association

The BVCA represents the overwhelming majority of UK based private equity and venture capital firms. The UK private equity industry is the largest and most dynamic in Europe, and is second in size only to the United States on the world stage. Our members invest in every sector of the economy, across all regions of the country.

The BVCA produces a number of research and publications for entrepreneurs, investors and private equity practitioners, all of which are available on the BVCA's website.

Private equity backed companies provide a substantial impetus to the economic performance and global competitiveness of the UK.

Private equity backed companies create jobs at a considerably faster rate than other private sector companies. Over the five years to 2002/3, the number of people employed in the UK by private equity backed companies increased by an average of 19% p.a., against a national private sector employment growth rate 0.5%. 83% of companies said this was organic growth rather than by acquisition. Private equity backed companies increased their staff levels at a rate of just over three times that of FTSE 100 and twice that of FTSE Mid-250 companies. It is estimated that private equity backed companies’ account for the employment of around 2.7 million people in the UK, equivalent to 18% of the current UK private sector workforce.

Private equity backed companies boost the UK economy. The performance of private equity backed companies significantly strengthens the UK economy and improves our international competitiveness. Over the five years to 2002/3, on average private equity backed companies’ sales rose by 21% p.a., more than twice that achieved by FTSE 100 companies. Exports grew by 11% p.a., compared with a national growth rate of just 3.3% and investment rose by 21% p.a., compared with a national increase of 5.4%.

81% of companies said that without private equity the business would not have existed at all or would have developed less rapidly.

Over three quarters of the companies felt that their private equity firms had made a major contribution other than the provision of money.

Contributions cited by private equity backed companies included private equity firms being used to provide financial advice, guidance on strategic matters, for management recruitment purposes as well as with their contacts and market information.

Nearly half of firms said that with private equity backing their level of investment was higher than would have otherwise been possible.

It is estimated that private equity backed companies generate total sales of £177 billion and contribute around £26.6 billion in taxes.

BVCA
3 Clements Inn
London
WC2A 2AZ

Tel:
Fax:

E-mail:
Website: www.bvca.co.uk

Articles by BVCA - British Venture Capital Association: