Performance and Public Market Equivalent Report 2022
This report presents the performance of funds managed by members of the British Private Equity and Venture Capital Association and then compares the performance of these funds to public equity markets, as represented by the FTSE All-Share Total Return Index and the MSCI Europe Gross Total Return Index, using two different Public Market Equivalent (PME) methodologies.
The performance statistics in this report are taken from the BVCA’s Performance Measurement Survey, an annual survey of fund level cash flows and valuations collected from our members. The PME analysis uses the same underlying dataset. This report supplements the PMS report and should be read alongside the main report.
With a significant presence in the UK, private equity and venture capital investments provide companies with the finance and know-how to deliver sustainable business growth.
Active ownership, over the medium to long term, delivers economic and social value to those involved in the businesses (from employees, management and owners on the one hand, to customers and suppliers on the other) and a wide group of stakeholders (fromlocal communities and local and regional economies, to national policy makers focused on issues such as climate change, diversity and inclusion and social issues).
Both private equity and venture capital firms are focused on delivering sustainable growth for the companies in which they invest: venture capital funds typically support early stage and younger companies, holding minority stakes in the businesses, while private equity funds typically acquire controlling stakes in more established businesses.
The Performance Measurement Survey (PMS) looks at funds which invest in businesses at all stages of the growth lifecycle – from venture capital funds specialising in start-ups to large buyout funds investing in global corporations. We at the BVCA firmly believe that private capital as an asset class offers exciting investment opportunities for pension schemes and other investors and the results of the Performance Measurement Survey, and this Public Market Equivalent analysis demonstrates why.
For the 2022 Performance Measurement Survey, we received responses from 105 members out of a total eligible pool of 136 members, a response rate of 77%. For comparison, in 2021 we received response from 114 members out of a total of 164 who were eligible. The full Performance Measurement Survey Report is available on our website here and a shorter highlights paper can be found here.
