Private equity investment in UK companies rose considerably in the first three months of this year following a drop at the end of 2018, according to the latest figures from Unquote Data. Total deal value climbed from £6.1bn in the last quarter of 2018 to £8.9bn in Q1 this year, a £3.9bn increase from the £5bn total value between January and March of last year.
Contextualising the importance of an alternative finance arena that has raised over £10billion in the last two years alone for SMEs scaling new heights of growth and innovation. The figures are indicative of strong investor sentiment to back these businesses in the UK as we move toward Brexit, in what is a key period for Britain’s economy.
It’s clear that there is still a significant demand for funding within businesses, allowing them to grow and scale with the ambition of their entrepreneurs. For that reason, we have brought today the insights from Luke Davis, CEO of IW Capital and Mark Brownridge, Director General of the Enterprise Investment Scheme Association. Here are their comments:
Luke Davis, CEO of IW Capital, reacts to the news:
“This news really supports what we have seen at IW Capital in the last year or so, a concerted effort to get on with business, regardless of Brexit and the eventual outcome. We have experienced record deal flow and buoyant investor confidence. What Brexit ends up looking like will not affect the fantastic range of innovative, growing SMEs we work with that are likely to drive our private sector forward. It certainly seems that private equity, through routes such as the Enterprise Investment Scheme, as well as other alternative finance options will be key to the business community in the future.
As entrepreneurs and investors look to capitalise on new opportunities that are bound to exist after Brexit, growth finance will be key to making the most of that. Such a rise in private equity backing should be marked as a statement of intent by investors looking to support small businesses that make up our fantastic SME arena.”
Mark Brownridge, Director General of the Enterprise Investment Scheme Association discusses the announcement:
“Private equity has now been a hugely important route of funding for small business in the UK for over 25 years, with EIS taking a significant role in this. Today’s figures on the rise in private equity deals and value will hopefully encourage investors to seek out the brilliant range of small business backing the opportunities that exist. Brexit uncertainty has undoubtedly impacted business investment and the chaotic nature of negotiations and votes is not helping, but it is great to see that businesses and investment can continue to grow despite this.
The Enterprise Investment Scheme has raised over £18billion in the last 25 years for small businesses in the UK through private equity and remains one of the most attractive tax efficient ways of investing in the UK. Not only this but it looks to be a huge part of the future of the sector moving forward.”
Hernaldo Turrillo is a writer and author specialised in innovation, AI, DLT, SMEs, trading, investing and new trends in technology and business. He has been working for ztudium group since 2017. He is the editor of openbusinesscouncil.org, tradersdna.com, hedgethink.com, and writes regularly for intelligenthq.com, socialmediacouncil.eu. Hernaldo was born in Spain and finally settled in London, United Kingdom, after a few years of personal growth. Hernaldo finished his Journalism bachelor degree in the University of Seville, Spain, and began working as reporter in the newspaper, Europa Sur, writing about Politics and Society. He also worked as community manager and marketing advisor in Los Barrios, Spain. Innovation, technology, politics and economy are his main interests, with special focus on new trends and ethical projects. He enjoys finding himself getting lost in words, explaining what he understands from the world and helping others. Besides a journalist he is also a thinker and proactive in digital transformation strategies. Knowledge and ideas have no limits.