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WHO WE AREWhat is the BVCA and who do we represent?

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DEVELOPING THE INDUSTRY Our range of training courses provide vital professional skills

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ANALYSING THE INDUSTRY Research and analysis is at the heart of what we do

11WELCOME It’s been a busy year, says Director General Tim Hames

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RESPONSIBLE INVESTMENTOne of our top priorities is responsbile investing

28TRANSPARENCY AND DISCLOSUREWe are committed to ensuring the industry is fully transparent

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REINVENTING THE INDUSTRY Tim Hames discusses how the industry is changing

16BRINGING THE INDUSTRY TOGETHER Our events help foster close member relationships

13INFORMING THE MEMBERSHIP We communicate with our members in many ways

22INNOVATION NATION The UK is at the forefront of innovation and our industry is driving economic growth

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OUR GOVERNANCEA list of our many committees and members

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CONTENTS 2/36

REPRESENTING OUR MEMBERS How does the BVCA engage with Government?

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Who we are

he BVCA is the industry body and public policy advocate for the UK’s private equity and

venture capital industry.Our aim is to connect all

private equity and venture capital stakeholders in the UK, promoting the crucial role our members play in the national and global economy as a catalyst for change and growth.

We have supported the industry for more than 30 years, helping to grow the British economy into one of the leading centres for investment and entrepreneurship in the world.

We provide authoritative technical

and regulatory guidance, research and analysis, specialist training, conferences, and best practice standards to our members.

The BVCA is committed to transparency and responsible investment, and taking a leading role in promoting diversity and inclusion within our industry.

We believe in working collaboratively with the wider business community, to ensure we continue to power extraordinary ideas, support companies and communities, and drive sustainable growth in the long-term.

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Our aim is to connect all private equity and venture capital stakeholders in the UK, promoting the crucial role our members play in the national and global

economy as a catalyst for change and growth.

T

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MembershipWe have a range of members, including over 250 venture capital and private equity

firms, as well as institutional investors, professional advisers, service providers and international associations. Over the last five years our membership has grown by 32%,

now standing at 670. This includes:

The last year has been exceptionally busy for the BVCA. Our achievements over the last 12 months include growing our membership to well over 600 members, including over 100 LP members – including pension funds, foundations, family offices and sovereign wealth funds, and around 25 fund-of-funds and secondaries investors.

Brexit clearly looms large over our industry and, as a consequence, the work of the BVCA. Since the referendum vote in June of last year we have been working tirelessly through our technical committees and representatives across the different parts of our membership to inform our priorities and positions.

We have held, and are continuing to hold, a series of Brexit breakfasts across the country to assess member sentiment and communicate our thinking and priorities for the task ahead.

We continue to keep our members in the loop. As well as the usual communications through Friday Focus, the Insight newsletter and

WelcomeThis year has been another eventful one for both our industry and the UK. We will continue to keep members up to date with the latest developments, writes Director General Tim Hames

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our monthly Technical Updates, we have now launched a new Brexit Bulletin, a monthly guide to everything you need to know about what leaving the EU will mean for our industry and the economy more broadly. We also continue to produce the quarterly BVCA Journal, alongside other extensive research papers and analysis.

Besides all our work on Brexit, we have also been working intensely with Government, No10 and leading departments on the myriad changes coming our way including, and not limited to, new rules around capital gains tax and carried interest, the OECD’s BEPS project, MiFID II, EU Audit Reform, corporate governance reform, and the Patient Capital Review.

Elsewhere, we have continued our expansion across the UK. Following the opening of BVCA Manchester in 2014, we now hold a quarter of our events outside of London with plans

for more. We’re holding more events than ever, almost 100 now of various shapes and size, including a hugely successful Tech Forum in September and our latest venture forum, Beyond Series A, in November.

We have enhanced our commitment to responsible investment and last year launched a new e-learning training course dedicated to this very topic, the first of its kind specifically tailored for private equity and venture capital.We launched the new BVCA website at the start of the year with a new design, new content and an overhauled member directory to

make it easier for people to use, especially entrepreneurs and businesses looking for funding.

It has certainly been a very busy – and successful – year for us, and the above provides just some of the highlights. On the following pages you will find more information about all our areas of work. With the coming year set to be another highly eventful one, we will continue to keep the private equity and venture capital industry up to speed with the latest developments

We are continuing to hold our Brexit breakfasts across the country to

assess member sentiment

TIM HAMESDirector General, BVCA

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Representing our membersWe take pride in our role as the UK private equity and venture capital industry’s voice to

Government and the wider investment community

Politics and policy The BVCA fosters close relationships between the Government, regulators, and policy-makers, and we are constantly engaged with, among others, 10 Downing Street, HM Treasury, the Department for Business, Energy & Industrial Strategy and the FCA.

It has been a phenomenally busy year for the BVCA from a policy perspective. Alongside developing our priorities ahead of the Brexit negotiations, we spent a significant amount of time on changes to the tax regime, including the treatment

of carried interest and new rules on interest deductibility. We continue to work on the implementation of European Union (EU) regulation, as the Government has been clear that

the UK will meet such obligations until we leave the EU.

We have also sought to influence new domestic policy initiatives aimed at increasing trust in business and accountability. This includes proposed corporate governance reforms for the largest private companies in the UK, which could impact some members’ portfolio companies.

The Government is also developing its Industrial Strategy and we have suggested ways in which it can positively contribute to the UK economy by supporting

“We have sought to influence domestic

policy initiatives aimed at increasing trust in

business and accountability”

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BVCA FACT FILEThe BVCA is working with Government to get the best possible Brexit deal for the industry

investment, helping innovative businesses to grow and scale-up, and ensuring the UK’s asset management industry is globally competitive. In our response to the green paper, we demonstrated how the UK could build on its strengths in the post-Brexit environment, attracting institutional investment into UK venture capital and building on areas such as skills, entrepreneurship and R&D.

There was a focus on the role of British Business Bank as an investor in funds, given the amounts currently invested by the European Investment Fund in UK venture, growth and lower mid-market funds. We also used the green paper response as an opportunity to highlight other areas the Government needs to review to ensure the UK has a vibrant funds

industry. Much of the feedback will be used in our response to the Patient Capital Review.

In other areas, the competitiveness of the UK’s private equity and venture capital funds industry received a boost in April 2017, when the Government implemented changes to UK limited partnership law. These had been requested by the BVCA and over the past four years we have worked with HM Treasury to reduce administrative burdens and provide more certainty for investors on actions they can take without losing their limited liability. These changes come at a critical time, given the impact of Brexit and increasing competition from other jurisdictions.

All our policy submissions can be found here.

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BVCA FACT FILEWe represent 670 members, including 112 Limited Partners

BrexitBrexit will have a major impact on our industry. We are fully engaged with the Government over the concerns of the industry and the relationship we hope to have with our European partners after Brexit is complete.

The key priorities in the talks for the venture capital and private equity industry are:

• Being able to attract highly-skilled people and entrepreneurs to the UK and providing certainty on the status of EU nationals;

• Continued funding for UK venture and growth capital funds, given the amounts committed by the European Investment Fund. We believe the British Business Bank should play a vital role in this regard;

• Ensuring UK firms still have access to EU investors and vice versa. As a minimum,

European National Private Placement Regimes must remain open, alongside access through a new relationship with the rest of the EU.

• A transitional arrangement between the UK and the EU is needed and agreed early on.

We have also launched our Brexit Bulletin to keep our members up to date with all the latest news on the Brexit negotiations and the Brexit Primer, which provides an entry-level guide to Britain’s departure from the EU and what it means for our industry.

2016 Party Conference SeasonPart of our engagement with the policy-making in the UK is through our attendance at party conferences, as seen last year.

During last autumn’s party conference season, we were,

as ever, engaged with all of the major parties, taking part in debates and helping to promote our industry’s voice.

The autumn party conferences provide a unique setting to debate the key political questions and policy issues of the day.

BVCA engagement and footprint at the 2016 conferences reflected the new political landscape in the aftermath of the EU Referendum, with successful events and high-profile speakers across the four main party conferences.

Some highlights from the 2016 conferences included:

LabourBVCA/Progress event• Tim Hames in conversation with

Angela Eagle MP (former Labour business spokeswoman) on “How will Labour work with business to deliver a new economy?”

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BVCA/IPPR North event• Angela Eagle MP; Jenny Stewart,

CEO, Liverpool Chamber of Commerce on “Why gender equality makes business sense.”

ConservativeBVCA/Bright Blue event• In conversation with the Rt Hon

Chris Grayling MP, Secretary of State for Transport.

BVCA/Reform Roundtable• Discussion with Margot James

MP, Minister for Small Business, Consumers and Corporate Responsibility, on “Women in Business, Securing the Talent Pipeline, Improving the Baseline.”

BVCA Conference Exhibition Stand• Featuring the re-launch of PE Map.

Among conference delegates, four cabinet members visited our stand.

Liberal DemocratBVCA/Education Policy Institute• Guest speaker David Laws,

former Cabinet minister and now Executive Chairman of the Education Policy Institute.

SNPBVCA/Reform Scotland Business• Drinks Reception with guest

speaker Keith Brown MSP, Cabinet Secretary for Economy, Jobs and Fair Work.

Other eventsWe also hosted a series of events throughout the year that brought together the industry and leading political figures. Highlights include:

BVCA Parliamentary Reception at the House of Commons featuring the highest number of parliamentarians ever.

BVCA/CBI Christmas Reception

BVCA hosted Sector Breakfasts:

• Fintech – Dan Morgan, Head of Policy, Innovate Finance;

• Consumer Goods – Chris Molloy, Founder & Director, Brand Potential;

• Technology-led businesses – Julian David, CEO, techUK;

• AI & Machine Learning – Professor Peter McBurney, Head of Department of Informatics, King’s College London;

• Manufacturing – James Selka, CEO, The Manufacturing Technologies Association;

• Education – Rt Hon David Laws, Executive Chairman, Education Policy Institute.

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Our research helps to ensure that the private equity and venture capital community are up-to-date with the latest trends, enabling you to make informed decisions.

Engines of growth: private equity and productivity potential in the NorthIn November, the BVCA published a summary report that looked at the role private equity can play in fuelling economic growth and productivity in the North of England. Commissioned in

partnership with Deloitte and NorthEdge Capital, and written by Professor Nick Wilson from the Credit Management Research Centre (CMRC) and Professor Mike Wright from the Centre for Management Buyout Research (CMBOR), the study found that, across the country, businesses backed by private equity outperform their non- private equity backed peers by as much as 9% and that this outperformance is more pronounced in the North.

Out of a total of approximately 3,300 companies identified in the UK with a strong statistical match to the ‘profile’ of being potentially suitable for private equity investment, there were 1,187 companies identified in the North of England. This compares with a population of 654 existing private equity-backed companies and suggests that, whilst the North have been highly active for private equity in recent years, there is potential for further investment, which in turn should play a valuable role

Analysing the industryWe are constantly researching the industry, providing in-depth

analysis and statistics throughout the year to our members

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BVCA FACT FILEOut of approximately 3,300 companies identified as suitable for private equity investment, 1,187 were in the North of England

BVCA ANNUAL REVIEW 2016/17

addressing the UK’s productivity challenge and facilitating economic and employment growth.

European Data CooperativeSince 2011, the BVCA has supported the European Data Cooperative, working with Invest Europe, AFIC, AIFI and 20 other national associations across Europe to develop a single system for collecting data on the industry. The key value-add of the project will be the ability to compare the UK with other countries in Europe on a like-for-like basis for the first time, strengthening our European public affairs efforts and acting as a critical component in our post-Brexit policy work.

Report on Investment ActivityThe statistics the BVCA publishes through our Report on Investment Activity (RIA) are used to produce the most comprehensive overview of the UK’s private equity and venturecapital markets available. Crucially, they provide us with the evidence needed to effectively demonstrate the industry’s impact to Government,

investors and the media, and reinforce the vital role our members play in the global economy as a catalyst for change and growth.

The 2016 RIA report showed that fundraising from UK investors increased to £2.7bn, with pensions funds raising the most. Despite an overall fall in global fundraising, the asset class still attracts large institutional investors. The report also revealed that £29bn had been divested in 2016, exceeding the record £21.6bn in 2014.

Performance Measurement SurveyThe Performance Measurement Survey Summary was published in June, and showed that, despite the political turmoil of the last year, the UK’s private equity and venture capital industry continued to be resilient, comfortably outperforming public markets. Private equity has generated returns of 11% to investors over the last decade, which is almost double that of the FTSE All-Share. The survey also revealed that UK venture capital funds recorded their highest returns last year since 2003.

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Bringing the industry together

We bring together fund managers, institutional investors, advisers, portfolio companies and entrepreneurs to develop fruitful relationships across the industry

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delegates, a record high, with a special focus on Brexit and what it means for business and investment;

• Across the two days, there was a 42% increase in LP attendance compared to 2015, and for the first time more LPs than GPs signed up to the highly exclusive LP-GP Dinner.

• For the first time we held a women’s breakfast as well as a lunch for young dealmakers.

Sector Forum Series• The inaugural Tech Forum was

held in September, the first forum in the BVCA Sector Series of events to compliment the suite of sector-focused roundtable breakfasts, saw over 150 delegates attend.

• The second event in the series the Energy Forum – was held in February and was equally well attended with over 120 attendees.

• Designed for entrepreneurs, investors and advisers to discuss the challenges, trends and opportunities within specific markets across the UK, Europe and internationally.

Peer Networking Series• Due to the successful inaugural

Partners reception in 2015/16 we ran two receptions in September and March 2016/17;

• In September we introduced the first Legal Counsel reception;

• In November we held a reception for the CFO & COO community;

• More events for different roles added for 2017/18.

Diversity and inclusivity• We hosted our first ever LGBT

networking breakfast in November with guests representing the breadth of the asset class;

• Given the success of the breakfast, we will be expanding the series in 2017/18 to provide further opportunities for members to share experiences and best practice;

• More than 200 people attended our Women in Private Equity & Venture Capital Forum in May 2016 to discuss how to improve the level of participation of women within the industry and representation in senior roles.

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Throughout the year, the BVCA holds events across the UK. These range from breakfast briefings and forums to award ceremonies and our annual Summit, and ensure that all our members are able to connect with their peers, learn about market trends, and keep up-to-date on the biggest issues facing the industry.

National Breakfast Series• New roundtable series introduced:

Manchester, Birmingham, Leeds, Bristol, Edinburgh, Belfast and the Channel Islands;

• Invitation only and exclusive to GPs members.

Brexit breakfasts• Following the EU referendum, we

launched a series of VC, mid-market and LP roundtable breakfasts across the country to consult members about their immediate and longer-term concerns regarding Brexit;

• 14 roundtables were held in total in 2016/17 due to popular demand.

BVCA Summit• Our annual flagship event, the

BVCA Summit saw more than 750

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2016 National Winners:

• Large Company Team of the Year Quotient Clinical, backed by Bridgepoint Development Capital (until December 2015), GHO Capital

• Mid Market Team of the Year Citation, Backed by ECI Partners (until February 2016), HgCapital

• Venture/Growth Company Team of the Year UKCloud (formerly Skyscape Cloud Services), backed by Business Growth Fund

• Social Responsibility Team of the Year Forrest, backed by Palatine Private Equity

• CEO of the Year Simon Cooper, On the Beach, backed by Inflexion Private Equity

Management Team AwardsThe BVCA Management Team Awards, produced in association with Grant Thornton UK LLP, is the annual celebration of excellence for UK businesses backed by private equity and venture capital.

• Introduction of the regional award presentations at the National Dinners, and the South East awards presented at our annual High Growth conference;

• National award announcements and presentations held for the first time at the Annual Gala Dinner;

• 270 investee company CEOs and representatives attended across the seven events, a significant increase compared to the previous year.

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Reinventing the industryDirector General Tim Hames talks to Jules Gray about the BVCA’s ambitions for the coming year

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t’s fair to say the last year has caused considerable uncertainty in the British

economy. Unexpected results in both the EU referendum and US Presidential election, alongside a new Prime Minister misjudging the political winds this year, has led to a general feeling that Britain is set for a turbulent period.

It is in uncertain times that raising finance can prove tricky – investors tend to hold fire when they can’t see what’s coming over the horizon. However, for the private equity and venture capital industry, the political turmoil has had little impact, according to Tim Hames.

“It’s been a busy and broadly successful 12 months for the industry as a whole,” he says. “Fundraising is never easy, but nonetheless, more funds are out there and being raised.”

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I

Part of the reason for the increase in funds being raised is that larger institutional investors that had previously committed little to the space were now seriously considering it. “So it’s been a relatively buoyant period,” adds Hames. “All the pressure is on how best to scan the horizon.”

Sellers’ marketA lot of the movement in the market over the last year has been for those firms selling business, he adds. By contrast things have been far more challenging for those looking to buy firms. “Buyers are struggling to find attractive assets at appealing prices, and are in a very competitive market where quite a lot of people have raised money recently.”

As a result of these conditions, the majority of the sector is looking for new ways they might deploy their capital. For example, some firms that had traditionally avoided investing in early-stage businesses were now considering taking positions in such start-ups.

Individual members at such firms are taking positions in start-ups in a private capacity too.

“We have lots of individual members of very large private equity firms who privately are angel investors, taking the sorts of investments they would never do in their day job,” he explains.

He also describes a “creative messiness” that has come about from the blurring of old demarcation lines between types of investors. “For example, many institutional investors who have traditionally invested exclusively through funds now want to either co-invest alongside them or, in some cases, directly invest.”

As a result, competition for deals is intense. Whereas in the past an investor would know the five or six competitors for a deal, today, “people are coming at deals from all sorts of strange angles”.

Focus on innovationBecause of the potential of some innovative new businesses, some large financial institutions are even considering whether they should have in-house specialist investment funds to look at private equity and venture capital. Fintech, for example, has garnered considerable attention over the last few years, and many firms want to capture the next big innovative start-up before their rivals do. “Fintech has been looked at for a long time, but there’s a feeling that we’ve really only scratched the surface in terms of its potential.”

Similarly, other innovative areas, such as cyber security, artificial intelligence and machine learning, are seen as where the smart money is. “This is all quite experimental stuff, but people are aware that

“It’s been a busy and broadly successful 12 months for the industry

as a whole”

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someone is going to make a small fortune by identifying the correct technology early.”

In addition, adds Hames, many firms are taking more interest in parts of the country where there isn’t as much competition for deals as there is in London and the South East. “That’s probably a very good thing,” he says.

An increasing emphasis is on developing long-term relationships, according to Hames. “Firms are making ever more vigorous efforts to maintain really quite long-term relationships with people who may not be interested in selling a business in six months or a year’s time, but in two or three years down the track.”

The private equity and venture capital industry appears to be going through a transformative phase, which may be linked to the uncertain geopolitical times we live in. “The general pattern is that old silos are breaking down and people are willing to do things differently,” he says. “I suspect

when we stand back historically and look at what was the investment trend between 2017 and 2022, it will look quite different to the last five years.”

Brexit negotiationsThe last year has unsurprisingly been dominated by talk of Brexit. What deal the Government will secure in negotiations with the EU and how it will impact the private equity and venture capital industry in the UK is certainly causing much debate. However, while Hames admits it has been a “complication”, he points out that regardless of the political uncertainty, the industry is really in quite robust health and is taking a ‘business as usual’ attitude. “Because there is so much uncertainty out there – not just in the UK – I think people have decided to just get on with it.”

As far as Brexit is concerned, the biggest issue facing the industry is around people, says Hames. “If a firm is running a European-wide operation from the UK, is it going to

be as easy to hire that clever Italian in 2021 as it was in 2015? If it’s not, then that’s going to be a problem.”

“What’s the supply of entrepreneurs going to look like, given that London, and the tech scene in particular, has a very large number of founder-entrepreneurs who were not born here. Are they still going to be here?”

Indeed, Hames points out that many of the entrepreneurs he meets in the UK have come over from smaller European markets like Portugal and Finland. “They move to the UK for a larger market and because they think they can port into the US from here.”

Brexit will also impact specific sectors, such as the food industry, that private equity and venture capital firms invest in. “Private equity has a particularly striking footprint in everything to do with the world of hospitality and food,” explains Hames. “Anything to do with food – who plants, picks, packs, drives, cooks, serves, and clears it up afterwards – has a pretty large non-

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UK, EU national basis to it. That’s not merely in central cities, but across the country.”

The hope, says Hames, is that the Government will be sufficiently agile to ensure that the UK remains a place where people want to do business, regardless of it leaving the EU. “I can understand why the Government is cautious about doing it unilaterally, but I think we’d all like to see the status of EU nationals currently here to be clarified. That seems to be a relatively easy win,” Hames says.

The BVCA will continue to push the Government to ensure the industry remains competitive in the aftermath of Brexit, he adds.

Fostering growthA lot of the work the BVCA does is designed to help bring the industry’s many players, investors and investees together. A large part of that is done through the many events arranged throughout the year and across the country. This year’s BVCA High Growth conference in June

was a particular success, and reflects how the association has changed in recent years. “High Growth is an example of something that we would never have done five years ago, but would now never consider scrapping.”

While historically the BVCA’s relationship with portfolio companies was “somewhat distant”, he says, now it plays an important role in bringing these innovative new firms into the same room as many potential investors. Its success can be seen from some of the firms that have attended past conferences, including Leon Restaurants, high-end cycle business Wiggle, and health food company Graze. He says: “We’re not just trying to showcase that these people exist, but trying to help them find each other. There’s a lot of camaraderie, because being an entrepreneur can be quite lonely.”

A diverse membershipElsewhere, the BVCA is actively promoting the private equity and venture capital industry to be more diverse. In particular, the gender makeup of private equity firms has become more potent, says Hames, because many investors and LPs are asking questions about whether firms are sufficiently diverse or at risk of groupthink.

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Indeed, many are concerned that if a firm is dominated by male voices, will they end up just investing in all-male management teams?

The BVCA is leading by example, making Pantheon’s Helen Steers its chair this year – only the second time a woman has held the role. “She is the first who is explicitly an investor – both an LP and a GP,” adds Hames.

The association is also helping to promote the burgeoning social impact investment sector, which is still in its early stages of development. While there may be a relatively small number of players in that space, says Hames, “potentially it could be very intriguing”.

Looking aheadThe next year, and beyond, will see the BVCA look to mature after a strong period of consistent growth. Membership has now hit 670 and has grown by an impressive 32% since 2012. Hames points out that this level of growth is not sustainable in the future: “We have significantly increased the numbers and range of members, but those are ultimately

finite. We haven’t quite hit the ceiling, but there comes a point where you’ve almost talked to everyone. I think our challenge for the coming year is how to combine maturity with innovation.”

The reach of the BVCA continues to grow, with the number of events doubled in four years. On top of that, the association is sending

out around four million emails a year to members, advertising a variety of these events and the various publications and research it produces. “The challenge is becoming a mature organisation after a high growth spurt. However, we don’t want to become boring and we want to keep innovating. We’re dealing with a sector that is changing very radically.”

Ensuring that the industry is prepared for what could be a turbulent couple of years is at the heart of what the BVCA does. The changing face of private equity and venture capital in this country means that the BVCA’s role in bringing all the many facets of the industry together and informing them of key trends is vital to the UK economy. Hames explains: “We’ve seen a lot of first time funds emerge in the last 18 months. We’ve seen a substantial revival of venture capital funds. The people launching these funds tend to be more international by background and have a more personal entrepreneurial background to them. They tend to be much more specialist. They’re a different sort of breed to the venture capitalists of the past, so that’s very exciting but it’s also a challenge to respond to it.”

“I think our challenge for the coming year is how to

combine maturity with innovation.”

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Informing the membershipWe regularly keep our members up to date with the latest industry trends,

research and regulatory developments

For an industry and a membership that is continuing to expand and faced with an increasing number of regulatory challenges, it is essential that provide our members with the latest market intelligence and insight. This year we have further enhanced the way we communicate.

New websiteIn January we relaunched our website – bvca.co.uk – with an all new events and training calendar, a vastly improved member directory, an expanded case-study section, enhanced filtering functionality for policy submissions and press releases, greater social media integration, and an expanded section explaining how private equity and venture capital works.

The new site also includes member only content, such as:• technical updates; • the BVCA Journal;• extra information available for

members in the member directory; • and back by popular demand, the

annual investor meeting calendar (for GP and LP members only) – we now have over 50 individual members participating.

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VC VoiceOur new monthly newsletter for members, featuring:• the latest policy and

regulatory developments• deal news• research• events• training

Social media• In 2016, we surpassed 10,000

followers on Twitter, and now have more thav 12,000 followers;

• We are also active on LinkedIn, Instagram, YouTube, Google+, and Flickr

LP engagement• Private Equity’s Place in Defined

Contribution Schemes: in the Autumn we published a discussion paper on the differences between Defined Contribution and Defined Benefit plans and the challenges faced by private equity.

• Quarterly LP Bulletin has over 1,200 subscribers (members and non-members)

• LP-GP Forums: supported by the BVCA Investor Relations Advisory Group and Limited Partner Committee, these forums bring together IR and LP professionals for breakfast discussions on important areas of common interest between fund managers and investors. Topics in 2016/17 included terms and alignment fund due diligence, managing succession and bridge financing. Exclusive to BVCA GP and LP members.

• Pension conferences: promotion of private equity and venture capital to the pensions industry.

• LP-only Brexit discussions

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Innovation Nation 2.0The need to promote and finance UK start-ups is now more vital than ever.

This year, in conjunction with Oxford Economics, we launched a sequel to our Innovation Nation campaign, which highlighted the economic impact of firms using

venture capital and/or business angel finance.

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FUELLING THE ECONOMY FUELLING GROWTH

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£30bn wider economic

impact of companies backed by VC and

angel funding

480,000jobs supported,

broadly equivalent to the total number of the UK’s wholesale

and retail sector

200,000people employed by UK businesses backed

by venture capital or angel investors

24,400 businesses operating in the UK in 2015 received venture

capital or angel investment during the previous five years

was invested by venture capital and

angel investors during 2015

contribution to UK GDP

revenue generated

£4.1bn £15bn £29.2bn

Developing the industryWe hold over 40 training courses throughout the year to support you

and your company’s long-term success

BVCA ANNUAL REVIEW 2016/17

e are the national provider of specialist training in the private equity and venture

capital industry. Our training covers everyone involved in the industry, from those who are new to the industry, those who are making the deals and those who provide operational support to the investment team.

FoundationIn response to growing demand, we now hold three Foundation courses a year. This flagship programme, taught by some of the

industry’s most experienced and respected practitioners, provides an intensive overview of private equity and venture capital, covering everything from evaluation of potential investments and deal structuring through to managing the portfolio and exits.

Digital disruption and how to harness digital opportunityIntroduced in March 2017, this is an interactive digital workshop designed to introduce attendees to the digital technologies, services and business models disrupting today’s

markets. This course will help you to understand how to spot and harness digital opportunity and develop the building blocks for the implementation of digital business strategies.

Advanced Introduction to Private EquityIntroduced in November, this is a follow-up to the BVCA’s two-day ‘Introduction to Private Equity’ course. A one-day workshop that allows participants to explore strategy, structuring and tax issues, LP and regulatory pressures, with a focus on terminology and jargon.

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100-Day PlanIntroduced in June for investment managers who have worked on transactions and are now leading on their first deal. This course helps managers navigating the crucial first 100 days after a venture capital or private equity firm takes ownership of an asset. This one-day course focuses on defining a clear strategy for the company, identifying and prioritising opportunities, the role of the Chairman, the CFO’s perspective, the drivers of value creation and more. Follow us on @BVCATraining for more details.

e-LearningIn April 2016, the Responsible investment e-Learning course was launched with founding firms receiving 700 licences and a further 150+ licences sold in addition.

Our e-Learning suite now consists of five courses, covering data protection, anti-money laundering and more.

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Responsible investment, social impact

We place sustainable and responsible investing at the top of our agenda, and continue to promote good practice throughout the industry

Private equity and venture capital are committed responsible investors and the BVCA continues to lead the agenda through its commitment to encouraging best practice and promoting star performers. 2016 Responsible Investment AwardsResponsible investment is considered fundamental to value creation and some of the best examples can be found in the winners of the BVCA Responsible Investment Awards, our annual platform for members to showcase their commitment and success to

integrating ESG practices into their investment strategies.

WinnersOutstanding Individual ContributionBeth Houghton, Partner, Palatine Private Equity

Overall ESG Framework - firms with more than £1bn under managementHermes GPE

ESG Engagement with Portfolio Companies - firms with more than £1bn under management KKR

Overall ESG Framework - firms with less than £1bn under managementBridges Ventures

ESG Engagement with Portfolio Companies - firms with less than £1bn under managementNorthEdge Capital

The Responsible Investment Awards for 2017 will see a new category launched – Responsible Portfolio Company Award – that will recognise portfolio companies that are successfully embedding ESG within their commercial activities.

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Submissions for the award can be made until 12 September and will be presented at the BVCA Summit on 12 October.

Responsible Investment e-Learning courseIn April 2016, we launched our Responsible Investment e-Learning course, an interactive course that covers each stage of the investment process and allows members to keep abreast of the most important developments in responsible investment. A full version granting a BVCA certificate and a shorter version are both available to suit the respective needs of deal teams, individuals and senior management level professionals.

We would like to thank PwC for their support in developing it, the 21 founding members of the course for co-funding it, and the BVCA Responsible Investment Advisory Group for their input. We would like to thank PwC for their support in developing it, the 21

founding members of the course for co-funding it, and the BVCA Responsible Investment Advisory Group for their input.

Impact investment In December, we held our second Impact Investment Initiative Networking Event, in partnership with Big Society Capital, at the Institute of Contemporary Arts in London.

The Impact Investment Initiative is a networking and volunteering programme designed to connect private equity and venture capital professionals with an interest in social investment to impact investors and their portfolio companies.

The event featured pitches from a number of representatives from the impact investment sector to demonstrate the range of opportunities available which could benefit from the skills of our members. To attend this event or to find out more, please contact events@bvca.co.uk.

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Transparency and disclosureThe BVCA is committed to ensuring the industry is fully transparent

and has worked with Government over the last year on new guidelines

The industry’s efforts to improve transparency and disclosure were explicitly mentioned by Government, with the Business, Energy & Industrial Strategy select committee published its report on corporate governance in April. In addition to recommendations on remuneration and governance of listed companies, the committee also made recommendations to Government on a voluntary reporting code for private companies. The report recognised the good work of the Private Equity Reporting Group and its monitoring of the private equity industry’s compliance with the Walker Guidelines. This report

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followed the government’s green paper on corporate governance last year.

The BVCA’s response to the green

paper can be found here. We will continue to work with Government and other stakeholders as they review these recommendations.

Our governance

Board of Directors Chairman 2016/17 Alan MacKay, GHO Capital. Chairman 2017/18 Helen Steers, Pantheon Ventures

Legal & Accounting Committee Chairman Amy Mahon, Clifford Chance (vice-chair), Julie Bradshaw, Doughty Hanson

Legal & Accounting Committee (cont.)

Regulatory CommitteeChairman Tim Lewis, Travers Smith

Calum Paterson, Scottish Equity Partners /

Kathleen Bacon, HarbourVest / Margaret

Chamberlain, Travers Smith / Michele

Giddens, Bridges Ventures / Patrick Reeve,

Albion Ventures / Rob Lucas, CVC Capital

Partners / Ross Marshall, Dunedin LLP /

Spencer Miller / Simon Witney, Debevoise /

Tim Farazmand / Tim Hames, BVCA /

Jayne Mould, Company Secretary, BVCA

John Atherton, Adveq Management / John

Heard, Abingworth / Jonathan Wood, Weil /

Richard Mcguire, PwC / Robin Bailey,

Pantheon Ventures / Sally Roberts, Accel

/ Stephanie Biggs. Travers Smith / Trudy

Cooke, Terra Firma / Thomas Laverty,

Kirkland & Ellis / Simon Witney / Alison

Hampton, Hg Capital / Godfrey Davies,

CDC / Steve Parkinson, EY

Alastair Richardson, 3i / Ashley Coups, EY /

David Higgins, Freshfields Bruckhaus

Deringer LLP / Duncan Tennant, Permira

Advisers LLP / Ed Griffiths, DLA Piper / Ed

Hall, Goodwin Procter / Garrath Marshall,

Deloitte / Geoff Bailhache, Blackstone

/ Geoff Kittredge, Debevoise / Graham

Hislop, Montagu / Iain Bannatyne, KPMG /

Andrew Lewis, ICG / Babett Carrier,

Cinven / Christopher Crozier, Permira /

Ed Kingsbury, Dechert / Fidelis Wangata,

Pantheon Ventures / James Smethurst,

Freshfields Bruckhaus Deringer LLP /

John Decesare, 3i / John Morgan, Pantheon

Ventures / Louise Dumican, Carlyle / Mark

Howard, KKR / Neel Mehta, Mayfair Equity

BVCA ANNUAL REVIEW 2016/17

Our committees enable representatives of our member firms to come together in their areas of expertise to advise us on policy and action. This is central to what we do and is critical to our

authority when we are commenting, publishing data or responding to public policy documents. Over 200 prominent industry figures serve as committee and advisory board members

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Regulatory Committee(cont.)

Global Capital CommitteeChairman Matthew Sabben-Clare, Cinven

Taxation Committee(cont.)

Taxation CommitteeChairman Mark Baldwin, Macfarlanes

Partners / Paul Cook, YFM Equity Partners

/ Paul Ellison, Macfarlanes / Rachel

Thompson, Bridgepoint / Simon Powell,

Advent International / Sheenagh Egan,

Livingbridge / Barry Lawson, The Private

Equity Consultancy / Tim Spence, Graphite

Capital Management / Alice Nisbet, LDC

/ James Read, Macquarie / Paul Gunner,

Bridgepoint / Amy Veitch, Macquarie /

Amandeep Johal, Triton / Ida Levine,

Capital International / Oliver Morris,

KPMG / Stephen Robinson, Macfarlanes Milburn, Bridgepoint / Andrew Burgess,

Carlyle / Andrew Dowler, Blackstone

/ Andrew Geczy, Andrew Geczy / Bart

Gombert, Bain Capital / Brian Magnus,

TDR Capital / Carsten Huwendiek, CVC

Capital Partners / Chris Davison, Permira

/ Christopher Crozier, Permira Advisers

LLP / Colm Colm O’Sullivan, PAI Partners

/ Conor Boden, Conor Boden / Dominic

Murphy, KKR / Dwight Poler, Bain Capital

/ Filippo Cardini, Towerbrook Capital

Partners / Geoffrey Bailhache, Blackstone

/ Gerry Murphy, BC Partners / Joseph

Blum, Global Infrastructure Partners /

Kathryn van der Kroft, 3i / Ludo Bammens,

KKR / Ralf Gruss, Apax Partners / Rory

Macmillan, Carlyle / Seda Yalçinkaya,

Silver Lake / Silvia Santoro, 3i / Simon

Patterson, SilverLake / Sir Trevor Chinn,

Russell Warren, Travers Smith / Sarah

Priestley, Goodwin / Stephen Pevsner,

Proskauer / Tim Hughes, PwC / Tony

Mancini, KPMG / Sara Clark, PwC / Paul

McCartney, KPMG / James Markham,

Graphite / Marius Draghici, Carlyle /

Kathleen Russ, Travers Smith / Adam Frais,

BDO LLP / William Shaul, KPMG Alan

Abigayil Chandra, Deloitte / Alexander Cox,

Ashurst / Alexandra Hone, ICG / Anthony

Stewart, Clifford Chance / Clare Copeland /

Craig Vickery, Exponent PE / Dominic Spiri,

Terra Firma / Fiona Cooper, Starwood /

Gareth Miles, Slaughter & May /

Graham Iversen, Greenberg Traurig

Maher / James Pratt, BDO LLP / Jenny

Wheater, Linklaters / Jill Palmer, 3i /

John Cox, KPMG / Jonathan Page, PwC /

Maria Carradice, Mayfair Equity Partners

/ Matthew Saronson, Debevoise / Michael

McCotter, Doughty Hanson / Paul

Cunningham, Helios Investment Partners /

Paul Warn, EY / Richard Vitou, Deloitte /

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Global Capital Committee(cont.)

Venture Capital CommitteeChairman Tony Askew, REV Venture Partners

Venture Capital Committee(cont.)

CVC Working GroupChairman Jonathan Tudor, BP Ventures

UK & European CapitalChairman Garry Wilson, Endless LLP

Adam Holloway, LivingBridge / Andrew

Hayden, Sovereign Capital / Chris Hurley,

LDC / David Burns, Phoenix Equity

Partners / Grant Berry, NorthEdge Capital /

Ian Lobley, 3i / Irina Haivas, GHO Capital /

Jonathan Brod, Next Wave Partners / Next

Wave Partners, Silverfleet Capital / Robbert

Zoet, Moorfield / Simon Brown, Lion Capital

/ Steven Whitaker, Equistone Partners

Europe / Zoe Clements, Palatine Private

Equity / Ross Marshall, Dunedin LLP

CVC Capital Partners / Vanessa Maydon,

Cinven / William Jackson, Bridgepoint /

Robert Easton, The Carlyle Group / Joseph

Schull, Warburg Pincus / Trudy Cooke,

Terra Firma

Aekta Patel, UKTI / Alasdair Greig,

Northstar Ventures / Alpesh Amin, Atlantic

Bridge Capital / Andrew Carruthers,

Novastar Ventures / Bruce Macfarlane,

MMC Ventures / Chris Barnes, Atomico /

David Hall, YFM Equity Partners / David

Mott, Oxford Capital / David Wilson, PG

Equity / David Staziker, Finance Wales /

Fearghal O’Riordain, Scottish Equity

Partners / George Whitehead, Octopus

Investments / Gerald Brady, Silicon Valley

Bank / Graham O’Keeffe, Joy Capital LLP /

Jenny Tooth, UKBAA / Jonathan Biggs,

Accel / Jonathan Simm, Altitude Partners

LLP / Jonathan Tudor, BP Ventures /

Kerry Baldwin, IQ capital / Mark Boggett,

Seraphim Capital / Mark Caroe, Eden

Ventures / Mike Chalfen, Advent Venture

Partners / Nazo Moosa / Nigel Grierson,

Doughty Hanson / Patrick Reeve, Albion

Ventures / Richard Anton, Amadeus / Rory

Earley / Sally Appleton, Sally Appleton /

Sarah Shackleton, Abingworth / Sarah

Wadham, Enterprise Investment Scheme

/ Stephen Smith, PwC / Stuart Chapman,

Draper Esprit / Marcos Battisti, Managing

Director / Simon Walker, Taylor Wessing /

Stuart Veale, Beringea / Tim Levett, NVM

John Coombs, Unilever / Christian Craggs,

Oakley Capital / Frederic Rombaut, Cisco /

Miles Kirby, Qualcomm / Pratima Aiyagari,

Cisco / Tony Askew, REV Venture Partners

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Investor Relations Advisory GroupChairman Laura Coquis. BC Partners

Responsible Investment Advisory GroupChairman Jeremy Lytle, ECI

LP CommitteeChairman Simon Faure,M&G InvestmentsMember Engagement

Advisory GroupChairman Andrew Ferguson, Baird Capital Partners Europe

Alex Stirling, The Carlyle Group / Andrew

Craig, Maven Capital Partners / Farah

Buckley, Adveq Management / Ian Sale,

HSBC / Julian Viggars, EV Group / John

Handley, Finance Birmingham / Marion

bernard, Business Growth Fund / Malcolm

MacDougall, Charles Russell Speechlys

Alex Koriath, Cambridge Associates /

Andy Lund, Riverstone Europe LLP /

Annette Wilson, Orange Growth Capital /

Cecile Belaman, Bain Capital / Christiian

Marriott, Equistone / Douwe Cosijn, LPEQ

Ltd / Janine Peake, Nordic Capital / Jeremy

Lytle, ECI / Johanna Barr, Advent / Mark

Drugan, Capital Dynamics / Mike Reid,

Frog Capital / Rob Barr, Pantheon Ventures

/ Martin Dunnett, Warburg Pincus / Steven

Batchelor, Hg Capital

Adam Black, Coller Capital / Adinah

Shackleton, Permira Advisers LLP /

Alison Hampton, Hg Capital / George

Potts, Northedge Capital / Jonathan Ord,

London Pensions Fund Authority / Patricia

Hamzahee, Integriti Capital / Penny

Latorre, Waterman Group / Phil Case, PwC

Dana Haimoff, JP Morgan Asset

Management / Delaney Brown, Canada

Pension Plan IB / Jan Faber, Bregal Private

Equity Partners / Joana Rocha Scaff,

Neuberger Berman / John Holloway,

European Investment Fund / Ken Cooper,

British Business Bank / Mike Powell,

Universities Superannuation Scheme /

Neil Cooper, GMPF / Peter Turnor, South

Yorkshire Pensions Authority / Richard

Clarke Jervoise, Stonehage Fleming

/ Spencer Miller / Kathleen Bacon,

HarbourVest / Yvonne O’Mara, GIC

BVCA ANNUAL REVIEW 2016/17

Research Advisory GroupChairman Andrew Lebus, Pantheon Ventures

Conor Kehoe, McKinsey / Gillian Brown,

Rubato Associates / Gillian Brown, Rubato

Associates / Harry Nicholson, EY / Mike

Wright, Imperial College London / Tim

Jenkinson, Saïd Business School

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BVCA ANNUAL REVIEW 2016/17

Impact Investment Advisory GroupChairman Tim Farazmand

Alternative Lending Working GroupChairman Benoit Durteste,ICG

Alex Pitt, Mustard Seed / Alistair Brew,

Business Growth Fund / Andy Ratcliffe,

Impetus Private Equity Foundation / Beth

Houghton, Palatine Private Equity / Deirdre

Davies, Deutsche Bank / James Ashwell,

Unforgettable / Jeremy Rogers, Big Society

Capital / Julia Grant, Pro Bono Economics /

Lindsay Smart, ClearlySo / Louise Scott,

PwC / Maggie Loo, Bridges Ventures /

Nathan Elstub, NESTA / Paul Latham,

Octopus Investments / Raf Goouvaerts,

Impact Ventures UK / Rory Macmillan, The

Carlyle Group / Sophie McGrath, Brown

Rudnick / Sue Woodman

Barry Lane, Investcorp Credit Management

/ Blair Jacobson, Ares Management Limited

/ Jeppe Gregersen, Apollo Management

/ Olivier Berment, Ardian Investment /

Sanjay Mistry, Mercer / Vesna Sipp, ICG

Channel Islands Working GroupChairman Andrew Whittaker, Ipes (Guernsey & GIFA)

Oli Morris, KPMG (Jersey) / Alistair Boyle,

Permira (Guernsey & CIPEVCA) / Anthony

Chandlen, Jersey Finance / Ben Robins,

Mourant Ozannes (Jersey & JFA) / Carl

Hansen, CVC (Jersey) / Richard Corrigan,

Jersey Finance / David Crosland, Carey

Olsen (Guernsey) / John Clacy, Deloitte

(Guernsey) / Mike Newton, State Street

(Jersey)

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5th Floor East, Chancery House53-64 Chancery Lane, London WC2A 1QST: +44 (0)20 7492 0400F: +44 (0)20 7492 0401bvca@bvca.co.ukwww.bvca.co.uk

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