UK Private Equity Investments Popular

May 13, 2002 ( - Last year, UK pension funds poured almost twice as much money into private equity investments as the year before, according to a survey.

The latest British Venture Capital Association (BVCA) and PricewaterhouseCoopers (PCW) private equity survey found that the total investment in private equity went from £817 million in 2000 to £1,594 million in 2001.

The BVCA said that UK pension funds are being encouraged to view private equity as an accepted asset class thanks mainly to the Myners Review, BVCA campaigning and strong returns, according to an IPE news report.

UK pension funds still lag behind their international counterparts according to the report. International non-UK pension funds invested £3,581 million last year in private equity, more than double their UK counterparts. The gap has narrowed, however, since in 2000, overseas funds invested over three times as much.

The report is the result of a questionnaire issued to BVCA members, asking them how they raised money from various types of institutional investors, such as pension funds and insurance companies. It also asked for the country of origin of the institutions.