Despite Brexit concerns, UK private equity investors have set their sights on acquisitions of European companies as new research shows that the purchase of corporates on the continent jumped 80 per cent.
According to the study from independent financial consulting firm Accuracy, the number of businesses in Europe bought using UK private equity rose from 245 in 2020 to 442 in 2021.
Global private equity transaction activity in Europe in 2021 also rocketed by more than 45 per cent, while domestic private equity activity increased by more than 65 per cent during the same period.
Charlene Burridge, A Partner at Accuracy, said: “UK private equity acquisitions of European companies bounced back sharply in 2021 as firms made up for time lost during the pandemic,” she said.
“Despite fears that regulatory and legal changes stemming from Brexit would stifle dealmaking, European corporates remain attractive investment opportunities for UK private equity firms.”
A key focus for private equity investment was European tech and software firms, which accounted for over a third of the UK private equity investment.
Looking ahead investment from UK private equity firms is in decline, both in the UK and overseas, according to data from intelligence firm Refinitiv, as investors deal with the economic impact of the war in Ukraine and surging inflation.
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