Private equity and venture capital invest more than GBP22bn into UK businesses in 2019

Private equity and venture capital investment into UK businesses reached GBP22.33 billion in 2019, an increase of GBP1.6 billion on the previous year, new research from the BVCA shows.

Published today, the BVCA’s annual Report on Investment Activity shows the full breadth of the impact of private equity and venture capital on the UK economy. A total of 1,530 companies across the country received backing in 2019, an increase of 15 per cent on the 2018 figures.

Venture capital investment increased by 67 per cent year-on-year to GBP1.65 billion with 821 companies backed, an 18 per cent increase.

The South West of England received the largest amount of private equity and venture capital investment (11.6 per cent) outside of London and the South East, followed by the North West (9.6 per cent) and the West Midlands (7.8 per cent).

The technology sector saw the largest number of deals and investment in 2019, accounting for 37.1 per cent of all companies, and 26.8 per cent of total investment.

UK private equity and venture capital funds raised GBP47.59 billion in 2019.

Pension funds provided 38 per cent of all capital raised followed by sovereign wealth funds (14 per cent) and fund of funds (11 per cent).

Michael Moore, Director General of the BVCA, says: “As long-term, responsible investors, private equity and venture capital have a key role in supporting the recovery post-COVID. What these 2019 figures demonstrate is the size of our industry’s economic impact, building businesses and jobs across the UK. I am under no illusions that there are tough times ahead, but I am supremely confident that private equity and venture capital, and the companies they back, are well-positioned to support growth, sustainability and innovation throughout the country.”
Neil MacDougall, Chair of the BVCA, says: “This year’s Report on Investment Activity clearly illustrates how important private equity and venture capital are to UK businesses big and small, providing them with the long-term capital and the investment expertise they need to thrive. As the country emerges from coronavirus, these attributes are needed now more than ever.”