
US, UK ranked as most attractive countries for PE investment – study
The US and the UK top the list of countries most attractive to investors, according to the latest edition of the Venture Capital and Private Equity Country Attractiveness Index.
The index ranks 125 countries according to the quality of their investment environment for VC and PE investors. The countries are analysed and ranked according to data points covering six key drivers: economic activity; depth of capital markets; taxation; investor protections and corporate governance; human and social environment; and entrepreneurial culture and deal opportunities.
Based on its "strong" performance in all six areas, the US remained at the top of the index benchmark with a score of 100. It is followed by the UK (90), Japan (87.4), Germany (87.3), and Canada (87.2).
The gap between the US and the UK has widened between the most recent editions, the report noted, while the gaps between the other countries in the top five have narrowed. Regarding the impact of Brexit, the report authors noted that "potential Brexit effects are not (yet) visible in the data and have been somewhat superimposed by the Covid-related damages".
Within the top 10, the most notable gains were seen for China, South Korea and France, which entered the top 10 for the first time.
Spain also entered the top 20 for the first time, up seven places since 2015, due to "increasing capital market activity and professionalism of its financial community, as well as a more entrepreneur-friendly culture".
The index is designed and produced by IESE Business School's Center for International Finance, working in conjunction with Emlyon business school and eXapital.
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