Private equity investment at highest level for five years
New research from KPMG has revealed that private equity investment, both in terms of value and number of deals, has reached levels not seen since 2017 in the first half of 2021. 785 deals were completed for an overall value of £73.7 billion pounds after factors such as the vaccine rollout and loosening restrictions increased optimism, while the depressed values of UK companies further fuelled demand for deals.
Investment confidence is often a barometer for the future of the economy and wider business sentiment so it is great to see that private equity is putting its money where its mouth is in terms of backing UK firms. This is a trend that has also been reflected in the desire of investors to support and invest in, small, private, growth companies. In our experience many firms are looking for growth capital, and the investors we work with are keen to back them in their goals after a tough year for businesses of all kinds.
With optimism among business leaders continuing to rise and several high value deals going through in July and the start of August, this record investment looks set to continue and with this in mind, we have commissioned national research to determine the sectors investors are looking to back.
In our research we found that sectors in green and sustainable fields are set to benefit from significant investment backing in the next year while firms in more scientific fields, who have enjoyed increased exposure over the last year and a half, are also set to benefit. It also suggests that hospitality and the creative industries, perhaps worst affected by the economic impacts of the pandemic, are firmly on the radar of UK investors.
The following year or so will be crucial for UK economic growth and SMEs and entrepreneurs will be key to that given that they make up 99.9% of private sectors businesses and employ nearly 60% of the workforce. The investment community that backs these firms will, therefore, be equally important so it is hugely encouraging to see this optimism and activity.
To find out more about IW Capital, or for more information on investment and non-executive opportunities, please speak to a member of the IW Capital team today on 020 7015 2250, or email firstname.lastname@example.org