Post-Brexit UK could see increased PE activity
UK companies could benefit from an increase in institutional investment post-Brexit, compared to their EU-based counterparts, according to research from offshore law firm Mourant Ozannes.
The survey of 260 limited and general partners finds 47% of respondents expect private equity investment in European companies to decrease, whereas only 33% anticipate decreased investment in UK companies.
The report also states 96% of GPs found fundraising more challenging since the introduction of AIFMD, which came into full effect in 2013. However, unquote" data reveals that, at €58.8bn, 2015-vintage European funds that have already held their final close raised more than their counterparts in any other year aside from 2007 (€75bn).
According to the Mourant Ozannes research, 69% of UK GPs and 50% of non-UK, EU-based firms deferred fund launches following the UK's vote to leave the European Union.
The firm's fund partner Ben Robins said in a statement, he expects uncertainty surrounding the type of separation of the UK from the EU to continue to weigh on institutionally backed dealflow.
The study also finds 93% of UK-based professionals remain positive about the private equity outlook over the next 12 months.
Mourant Ozannes' study gathered responses from 260 GP and LP professionals across North America, Europe and Asia.
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