BIZCHINA / Key Speeches
Sharing European success of PE/VC
Updated: 2006-04-10 08:50
David Cooksey, chairman of European Private Equity and Venture Capital
Association, delivered a keynote speech at the 8th China Venture Capital
Forum that opened on April 7 in Shenzhen, a boomtown in South China's
Guangdong Province.
In his speech, Mr Cooksey shared the successful experience of venture
capital (VC) development in the European countries with participants.
He said private equity (PE) is aimed to restructuring and revitalizing
existing companies and making them more innovative and more competitive,
while VC, in its early stage, is to bring new technology to market.
In the past few years, PE/VC developed quickly in European countries. For
PE alone, in 2004 the funds raised totaled 27.5 billion pounds and in
2005 the figure was 59.5 billion pounds. Investment and divestments are
growing too, with the funds raised in 2004 being 27.5 billion pounds and
investments totaling 36.9 billion pounds, according to Mr Cooksey.
He said the framework for the success is to have a legal structure,
establish financial reporting standards and sufficiently protect
intellectual property rights. Corporate governance is vital to secure
long-term institutional investment in private equity (PE) and VC and
rapid growth of the VC industry requires responsibility, he added.
Mr Cooksey also highlighted the agenda for success of PE/VC in the
speech. He said, the most important factor to ensure success is the
confidence of investors, in which a transparent and reliable reporting
system is essential. And, what comes next is the support of government
policy makers, who should demonstrate the benefit of PE/VC, as well as
its success to employment, the economy and the community.
(For more biz stories, please visit Industry Updates)
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