Analysis of U.K based private equity markets

By



ACKNOWLEDGEMENT

I am very grateful to God who has given me the grace to start this course and end it successfully. I would like to thank my family, who worked really hard and stood by me all the way. God bless my family who gave me full support and encouraged me. I would like to thank my supervisor, for her patience and support. Finally to my friends and all who have made the completion of this project a success, thank you and God bless you.

DECLARATION

I declare that the work in this dissertation was carried out by me. The project is my own original work and has not been submitted elsewhere in fulfilment of the requirements of this or any other award.

SIGNED: ............................................................. DATE: ..........................

TABLE OF CONTENTS

ACKNOWLEDGEMENTii

DECLARATIONiii

CHAPTER 1: INTRODUCTION1

1.1 Background of the topic1

1.2 Problem Statement2

1.3 Research Questions2

1.4 Significance of the Study2

CHAPTER 2: LITERATURE REVIEW3

2.1 Overview of the features of Private Equity Market3

2.2 The impact of financial services on Private Equity Market4

2.3 The importance of Financial Transactions5

CHAPTER 3: METHODOLOGY7

3.1 Overview of the Research Methods7

3.2 Sampling Size7

3.3 Instruments for Data Collection8

3.4 Ethical Concerns for the Research8

REFERENCES9

CHAPTER 1: INTRODUCTION

1.1 Background of the topic

The major purpose of this study is to conduct an analysis of UK private equity market. The financial and the professional services carried out in UK represent the major share towards the UK economy because it is the revenue generating industry. They account around 8.6% and 3.6% of the total size of GDP. The amount that was covered in the total revenue was £344.5 billion of UK's total Gross Value Added amount in 2004. It was the highest contributor towards UK economy in that particular year. In UK, London is known as the major financial hub because of its premium value for the investors and various other financial professionals. The overall strength of UK's global financial services industry has been considered as vital strength for the expansion of the UK private equity industry. The industry has gained a reputation of becoming a first class international industry after the US private equity market (Barber, 2007, 61).

The industry has achieved several benefits because of its strong access to a large amount of skilled workforce and due to the availability of well-established community of advisors and supporting organisations. The organization has remained steady for around two decades because of the equity amount that has been invested in UK businesses. The rate of growth kept in increasing at 22% per annum from the early 1980s in order to reach an amount of £12 billion in 2005. In the period of six years, private equity funds have managed to generate £70 billion of capital for investment into unquoted businesses. This is the reason why it can be said that the private equity market in UK has been able to generate large amount of money in this market. Therefore, all the issues related to the study will be discussed in detail (Daunoriene, 2008, ...