European Venture Capital - First performance figures
The results of the first ever study to be conducted on the pan-European private equity and venture capital market have been released by the European Venture Capital Association (EVCA) and the European Commission. The principal aim of this pilot technical study, which was supported by the Community's INNOVATION programme, was to find a suitable methodology to measure the performance of venture capital funds in the European market. Growing numbers of investors are viewing Europe as a single market for venture capital and private equity despite its diversity. Although it is premature to draw detailed conclusions, the initial results of the study are encouraging and show that private equity returns compare well with other asset classes. The study was based on a sample of 92 independently managed funds, open to outside investors between 1980 and 1990, with committed capital of ECU 4,970 million. Funds which are "semi-captive" or "captive", "evergreens" and listed venture capital funds were excluded. The principal reason for this was the differences in the cost structures and cash flows for these funds which differ for closed-end independents. Future studies will look at ways of including them as they are a sizeable proportion of the European market.