The UK economy has been one of the economies hardest hit by the global recession. Subsequently, it should come as no surprise that in Q2 2008 private equity fundraising by UK-based firms has continued to decrease. Only eight funds reached a final close in the last quarter, raising a total of GBP 6.1 billion. In terms of aggregate commitments, this was a decrease of more than 50% from Q1 2009 and a 33% decrease in the number of funds raised.
However, when looking over a longer time period, UK-based private equity firms have raised a total of £204.3 billion in aggregate commitments from investors over the last 10 years. Furthermore, as of July 2009 UK firms have £72.1 billion in dry powder to invest.
46% of UK-based firms make venture capital investments while 41% are focused on buyouts. The remaining 13% focus on other types of investment. On average a UK-based venture capital firm will make equity investments in a portfolio company of between £2 million and £20 million while a buyout firm will invest between £20 million and £110 million.
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