UK - The British Venture Capital Association (BVCA) and the National Association of Pension Funds (NAPF) have worked together to produce a ‘how to’ booklet on private equity for pension funds considering investment in the asset class.
In a speech to the NAPF investment conference in Eastbourne, Frank Russell’s Ken Ayers – one of the representatives in the dialogue between the BVCA and NAPF - says that while there is no question of the NAPF recommending investment in private equity, the association is attempting to remove some of the “mystery” surrounding venture capital.
He comments: “ In summary we believe that difficulties arising from misunderstood definitions and incompatible return calculations have been largely resolved, as have some of the problems of liquidity, and the availability and accessibility of suitable investment opportunities.”
Ayers says a frequently voiced concern of pension funds is that they have found it difficult to identify promoters of private equity funds searching for capital at a particular time.
Accordingly, the BVCA has said a list of open funds – including fund of funds - will be available in the booklet as well as on the BVCA website.