British
Venture Capital Association Venture Capital
British Venture Capital Association Venture
The
British Venture Capital Association ( BVCA ) represents
around 165 UK private equity firms, who in turn are currently
invested in over 11,000 companies, employing nearly 3 million
people between them. That is equivalent to some 18% of the
private sector workforce. The industry invests in every sector
of the economy across all regions of the country. The UK accounts
for nearly 40% of the whole of the European market and on
the world stage we are second only in size to the United States.
The economic impact of the private equity industry on the
economy of the United Kingdom is substantial and it continues
to grow.
Since
1984, British Venture Capital Association member firms have
invested over £55 billion in around 25,000 businesses.
In doing so, they have helped thousands of entrepreneurs to
start up and expand their company, to buy into a business,
to buy out a division of their parent company, and to turnaround
or revitalise their business.
What
are private equity firms looking for?
Private
equity firms essentially look for a company with high growth
prospects and a good product or service with a competitive
edge or unique selling point, although most important is a
management team with direct experience of the product and
its market. The management team must demonstrate a strong
commitment in addition to self confidence and a real ambition
to turn their business plan into reality. Most private equity
firms’ investments take the form of equity capital. Their
reward lies in the growth of the companies in which they invest,
ideally resulting in the sale of the company or its flotation
on a stock market.
How
do private equity firms help?
Private
equity is not just about providing a source of finance. Private
equity firms often provide support – both financial and
strategic – to enable growth companies to develop into
the major businesses of tomorrow. Private equity firms generally
want to become involved in the development of the companies
in which they invest. This involvement will vary from firm
to firm, but day-to-day management control is not sought.
The majority will, however, expect to participate through
a seat on the board. This enables them to offer on-going support
to the management on strategic and policy matters and to represent
a broader perspective on corporate development based on their
extensive experience with other growing companies.
For
further information on British Venture Capital Association
( BVCA) Venture Capital visit the British Venture Capital
Association website.
|
