Returns from UK private equity funds have significantly outperformed the stock market over three, five and ten years according to the 2006 Performance Measurement Survey summary results pu
Returns from UK private equity funds have significantly outperformed the stock market over three, five and ten years according to the 2006 Performance Measurement Survey summary results published today by the BVCA – The British Private Equity and Venture Capital Association, in conjunction with PricewaterhouseCoopers LLP and Capital Dynamics.
The survey shows that the industry recorded ten year returns of 18.7% compared with 7.9% for the FTSE All-Share index. Measured over three years, private equity returns were 31.3% compared with the 17.2% on quoted equities.
Peter Linthwaite, Chief Executive, said: ‘The 2006 performance figures help to demonstrate why private equity is such an attractive asset class for pension funds and why an increasing number of pension fund trustees have decided to invest in it. The above-average returns that private equity generates helps retirement schemes provide good pensions for their members.’
Ashley Coups, director, PricewaterhouseCoopers LLP, said: ‘The 2006 Performance Measurement Survey shows that private equity returns have comfortably outstripped the average returns on UK pension funds. Over the past five years UK private equity returned 20.9% compared with 8.3% return on total pension fund assets, according to figures from The WM Company.’
