Private Equity Investment in SMEs Accelerates

The latest data releases from the UK Growth Buyout Dashboard – a quarterly trend analysis of private equity transaction in the £10 million to £100 million segment produced by Cass Business School and Lyceum Capital shows that 12 companies raised an estimated £590m of buyout funding during the period.

This compares with 15 transactions and £474m of funding in the previous quarter (April to June) when activity spiked in the run up to the government’s emergency Budget and the anticipated capital gains tax increase.

The reports authors say the figures provide further evidence that business owners and entrepreneurs, many of whom are thought to have mothballed plans during the downturn, were returning to the market to realise value or secure capital for growth expansion.

This indicates positive news for SMEs and measurable growth in funding from private investors including business angels. The news contrasts sharply with bank lending to SMEs which continues to fall.

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