UK private equity firms increased their investment activity throughout 2005, according to the British Venture Capital Association's (BVCA) reports on investment activity and performance measurement, mirroring confidence among both investors and fund providers.
According to the report, worldwide investment by UK private equity firms increased by 21% in 2005 to £11.7bn, with investment in the UK increasing by 28% to £6.8bn from £5.3bn in 2004.
UK private equity firms have also maintained a foothold abroad, with UK investments in overseas companies rising by 12% in 2005 to £4.9bn.
The reports highlighted the continuing success of the UK's private equity industry - an industry that has invested in every sector of the economy from new business startups to large manufacturers and biotechnology firms.
The latest BVCA/YouGov quarterly confidence and attitude survey reflected the confidence venture capitalists have in the UK market, with 94% of the BVCA's member firms stating that the UK is an attractive place to do business.
Some 70% of respondents rated the attractiveness of the UK as better than the rest of mainland Europe.
However, long-term expectations weren’t as positive, with 41% expecting the UK to become a less attractive place to invest than Europe over the next 12 months.
Chief executive of the BVCA Peter Linthwaite, said: “These latest figures demonstrate once again the significant contribution the private equity and venture capital industry makes to the health and dynamism of the UK economy, with the industry investing in every sector of the economy across all regions of the country.”
