BVCA praises UK private equity

Writing in the organisation's annual report, BVCA Chief Executive Simon Walker notes that Britain's total investment for 2007 reached £31.6 billion.

Of this, some £12 billion was spent in the UK, while £14 billion went to Europe and £5.6 billion to the rest of the world.

Furthermore, Mr Walker cites BVCA performance measurement research which found the UK private equity industry achieved ten-year returns of 20.1 per cent in 2008, compared to 6.2 per cent recorded for the FTSE All-Share index.

In addition, he stated: "London is the most established centre for the European private equity and venture capital industry. Globally, it holds second place behind the USA.

The BVCA annual report also reveals its members invest in around 1,300 UK firms each year, while investment in research and development from private equity-backed companies increased by 14 per cent per year, which is above the national average.

Earlier this year, the Worldwide Centres of Commerce Index study, carried out by MasterCard, claimed London is the most influential city globally, pointing out its strong economy, secure legal framework and successful financial markets.