U.K.-based venture capital funds outperformed U.K. pension funds over one-, three- and five-year periods, according to the British Venture Capital Association.
The funds returned a net 30.1% in 1998, 28.8% on a three-year annualized basis and 22.1% on a five-year basis, the associations annual performance measurement survey revealed. In comparison, U.K. pension funds returned 14%, 13.8% and 11% during those respective periods, according to the WM All Funds Universe. For the first time, the BVCA survey included funds that are invested outside Great Britain, adding some distortion to the figures. Only 16 of the 189 funds surveyed were invested overseas. The survey indicated large management buy-out funds were the best long-term performers, returning 22.9% over 10 years. Funds investing in a full range of venture capital projects were the best performers last year, returning 64.8%.