CBI (Confederation of British Industry)’s Post

Could now be the time for UK smaller companies? As cheap valuations and hopes for rate cuts boost small cap sentiment, we spoke to investment trust managers and found out where they're seeing opportunities under the new government: https://lnkd.in/e2FSy_DA Annabel Brodie-Smith Nick Britton, CFA, MCSI Nick Gardner Vanessa Booth Juliet Webber Richard Staveley Rockwood Strategic J.P. Morgan Ken Wotton Strategic Equity Capital plc Roland Arnold BlackRock Stuart Widdowson Odyssean Investment Trust PLC Anoushaa M. Sahil Kumar Kerry Haxby-Dean Tim Naylor Ed Hooper Sarah Gibbons-Cook Nick Croysdill #investmenttrusts #investing #investmentcompanies

I recently came across this article in The Telegraph regarding the deployment of government money in VC/PE (https://lnkd.in/etdq-eD2 ‘The returns are awful’: why taxpayers are racking up losses on British start-ups). I am not convinced by the article's claim regarding the returns on the VC funds BBB has invested into. I suspect that the “awful” returns relate to the various Covid reaction loans that were provided via the BBB. What I definitely believe is that the next cycle of government funding into the VC sector should focus on 'Gap Finance' to smaller, relatively early-stage businesses in regions outside of the South East of England. These are the investments that are particularly difficult for the private sector and yet are crucial for economic and technological development. To maximise impact, we should look to regional or industry-focused fund managers who understand their sectors and regions intimately and the funds should be relatively small in size to ensure focused investment rather than a scatter gun approach. More targeted regional and sector funding could help bridge investment gaps for early-stage companies that have historically struggled to raise capital, foster diverse innovation across the regions and would bring private capital into these businesses investing alongside the state investment. Stephen Cardwell Jessica Young Jasnam Ghudhail ASCI George Widdows Jonathan Freeman Ellie Hough Brett Skelly Ian Brown #VC #PrivateEquity #InvestmentStrategy #GovernmentSupport #RegionalFunding #Tech #Technology”

Private equity firms are proving to be not only financial players, but architects of recovery and growth. From breathing new life into struggling industries to driving innovation and creating jobs, they’re shaping Europe’s economic future. #privateequity https://lnkd.in/e46FavxR

Private equity firms are proving to be not only financial players, but architects of recovery and growth. From breathing new life into struggling industries to driving innovation and creating jobs, they’re shaping Europe’s economic future. #privateequity https://lnkd.in/e46FavxR

“There needs to be more tolerance of value creation equity schemes, as long as they are aligned to long-term shareholder value creation and less reliant on the proxy agencies, such as ISS, which are black boxes on governance and not fit for purpose for scaled-up businesses.” 💬   Ken Wotton, Managing Director, Public Equity, comments on the need to give new incentives to the business leaders of tomorrow, in an article for MoneyWeek.   The UK is the third largest venture capital market in the world and the largest in Europe, with London continuing to drive 70% of total UK VC investment in the last few years. However, the current remuneration model for listed UK businesses is a factor deterring entrepreneurs and quality managers from choosing PLC entities as opposed to US businesses.   Ken goes on to highlight the current opportunity the low valuations of the UK business-software sector presents with listed tech companies trading at massive discounts, when their private market counterparts are trading at a much higher premium.   https://lnkd.in/e7Up4VtV   #ukequities #publicequity | Capital at risk. Not an investment recommendation. Opinions are the fund managers own and not necessarily those of Gresham House. 

How to pick the best UK small companies to invest in? When it comes to investing in the stock market, we all know the UK is cheap. However, smaller companies are even cheaper, and while they might be harder to research, they can pay off big. Fraser Mackersie and Simon Moon, co-managers of the Unicorn UK Income Strategy, UK Smaller Companies and UK Growth funds are tasked with finding the best British companies to invest in outside the FTSE 100, but the selection of small companies has been rapidly reducing in recent years. Only around 700 companies are left on the UK’s AIM market, the fewest since 2002 and less than half the number during the market’s heyday in 2007. However, Mackersie and Moon were undeterred, with the former stating that while “if it persists, it will be a bit troubling,” but with over 700 companies to pick from, there was still plenty of choice. ✍️ Elliot Gulliver-Needham Read the full story here 👇 https://lnkd.in/g3mJJ9f4

Private equity firms are stepping up, not just throwing cash at the problem but rolling up their sleeves and offering much-needed expertise. #privateequity https://lnkd.in/e46FavxR

📈 Increased Access to Funds & Lower Borrowing Costs = Private Equity Resurgence 📈 The Australian private equity market could be on the verge of heightened activity with credible speculation about rate cuts later in 2024. What this likely means for the private equity market is increased access to funds and lower borrowing costs. Here, corporate lawyer Katie Higgins highlights four pivotal steps business leaders should take now to seize the anticipated investment opportunities: 1️⃣ Be Proactive: Align your pre-investment strategies, adjust structures, and perform internal due diligence. Ensure all decision-makers are on the same page regarding capital needs and funding deployment. 2️⃣ Get Ready for Scrutiny: Preemptively conduct internal reviews to fix any red flags. Collaborate with your accounting and legal teams to run "ghost" due diligence reports. 3️⃣ Understand Funding Nuances: Recognise that different funding rounds require tailored approaches. Look for investment partners who offer strategic benefits beyond capital, such as market access or expertise. 4️⃣ Engage Experts Early: Partner with trusted legal and accounting professionals to manage logistical details, set up data rooms, and ensure compliance. 🔗 Read the full article here: https://lnkd.in/gnQAH2Tm 📩 For in-depth guidance and support on capital raises, contact our Corporate + Commercial lawyers via hello@lawsquared.com #PrivateEquity #CapitalRaise #Investment #CorporateLaw

Private equity bosses warn of lower returns These are going to be tough vintages . . . they’re probably going to underperform. The industry’s model of paying high prices for companies using cheap debt before selling them just a few years later at a higher price ratio won’t work in the following 10 years. #privateequity #investing

Expect an unprecedented rise in private equity deals in 2024, offering a wealth of untapped potential for investors, businesses and entrepreneurs. Discover how PE firms can take advantage of 2024 trends.