BVCA Annual Review 2024-25 (British Private Capital Council (BVCA))

Summary

• Private equity and venture capital invested £20.1bn into UK businesses in 2023.p.23
• 6% of UK GDP or £137bn was directly generated by businesses backed by private capital in 2023.p.23
• 12,000 UK companies were backed by private capital in 2023.p.23
• UK private capital firms hold £178bn of 'dry powder'.p.23
• Carried interest taxation will rise to 32% in 2025, followed by an effective rate of 34.1% in 2026.p.6
• BVCA events covered 50+ events with 4,600+ attendees.p.30
• 18% of investment professionals in the UK are from an ethnic minority group.p.27

Key insights

1. The BVCA recommends doubling the threshold for full-scope AIFMD authorisation to £1bn.p.8
2. A record 90 portfolio companies were in scope of the Walker Guidelines, and 81 firms complied.p.13
3. The Pensions and Private Capital Expert Panel was supported by a 50-strong Technical Expert Group.p.11
4. The BVCA passed over 100 MP Connect visits since 2021, and 58 MPs from the current Parliament have visited member-backed businesses.p.18
5. Over 70% of firms of all sizes had governance policies on cybersecurity, customer privacy and anti-corruption.p.25
6. The average holding period for businesses backed by private capital is 5.5 years.p.23
7. The BVCA events brought together over 4,600 delegates including 500 speakers.p.4