The private equity industry in the United Kingdom has seen significant growth in recent years, and the outlook for 2023 appears to be optimistic. Despite the ongoing economic uncertainty caused by Brexit and the COVID-19 pandemic, private equity firms are expected to continue to make significant investments in UK businesses.
One factor contributing to this positive outlook is the abundance of dry powder available to private equity firms. Dry powder refers to the uninvested capital that private equity firms have raised and set aside for future investments. According to Preqin, a data provider for the alternative assets industry, private equity firms globally have more than $2 trillion in dry powder available for investment, with a significant portion of that capital expected to be invested in the UK
Another factor driving the positive outlook for the UK private equity industry is the large number of underperforming and undervalued businesses that have been impacted by the pandemic. Private equity firms are expected to play a key role in helping these companies recover and grow, providing them with the capital, expertise, and support they need to succeed.
In addition to these factors, the UK government has implemented a number of measures to support the private equity industry. This includes tax incentives, such as the super-deduction scheme, which allows companies to claim 130% of the cost of qualifying capital investments as a tax deduction. This is expected to further boost investment activity in the industry.
While the outlook for the private equity industry in the UK in 2023 is largely positive, there are also potential challenges that must be considered. One of the main concerns is the potential for interest rate increases, which could make it more difficult for private equity firms to secure financing for their investments. Another potential challenge is the increased competition in the industry, as more firms enter the market and compete for investment opportunities.
About Fram Search
Established in 2010 by Simon Roderick, a recruiter with 20 years City recruitment experience, Fram Search is a specialist financial services recruitment consultancy. We focus on permanent and interim recruitment in the UK & internationally.
Our Private Equity & VC practice works with firms operating in private equity, venture capital, private equity real estate, secondaries, and fund of funds markets. Covering investment professionals, IR & marketing, finance, operations, and legal & compliance.
We provide high quality contingent and retained recruitment services to boutiques and global brands. We have long established relationships and access to deep talent pools. Fram takes a highly consultative approach, and we have a quality over quantity ethos. We are proud that our contingent fill rate is nearly three times the industry average and we augment our retained search methodology with rigorous psychometric testing. Champions of diversity & inclusion, all staff have undertaken unconscious bias training.
Please contact us on 01525 864 372 / [email protected] to learn more.
Share this Post