In 1987, following discussions with the British Venture Capital Association (BVCA), the Department of Trade & Industry (DTI) and the Inland Revenue agreed a series of guidelines on the use of the limited partnerships as venture capital vehicles. In so doing they made it possible for the UK to take a leading role in the rapid expansion of the private equity and venture capital industry.
The combination of the assured tax transparency of English limited partnerships and UK expertise in private equity structuring has combined to keep the UK at the epicentre of European and global venture capital ever since. In 2003, the BVCA estimated that a total of £8.9bn was raised by UK fund managers, comprising 55% of all sums raised in Europe; strongly ahead of the next largest suppliers, Sweden and the Netherlands at 8% and 7.6% respectively.
