Government-backed regional venture capital funds lost 75pc of their value in the last year, official figures reveal.
Looks like government equity performs even worse than private equity.
Hoocouldanode?
Government-backed regional venture capital funds lost 75pc of their value in the last year, official figures reveal.
Looks like government equity performs even worse than private equity.
Hoocouldanode?
Some of those funds are private VC managers – who manage funds for pension companies, wealthy individuals, etc. Some of those funds are run by Government quangos. It would be interesting to compare the two. In any case, I’d like to see the comparison between these regional VC funds and all private funds: I suspect that all small business investment funds took a whack recently.
The comparison’s also slightly unfair because of the way the RVFs are structured – the government takes the initial risk of default (equivalent to the buyers of low-rated CDO tranches), so even if RVF recipients’ default rate is actually better than private debtors, the government will lose its investment first.