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Article: Special Supplement: Private Equity - Will private equity join the mainstream?
- Article from:
- Pensions Week
- Article date:
- February 13, 2006
CopyrightCOPYRIGHT 2006 FT Business. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Pamela Atherton
Private equity in the UK can trace its origins to the late 18th century when entrepreneurs found wealthy individuals to back their projects on an ad hoc basis.
This informal method of financing became an industry in the late 1970s, when a number of private equity firms were founded. Today, there are more than 170 active UK private equity firms, investing several billion pounds each year in unquoted companies, around 80% of which are located in the UK.
Despite average returns of around 15% over the last 10 years, UK pension funds have been loath to invest, mainly due to private equity's perception as high risk, and ...