Post-Brexit PE Investment in EU Hit Harder than in UK

According to a research the private equity (PE) industry in the UK will be hit less harder than in the EU following the Brexit.

UK Private Equity Fundraising

Ben Robins, Jersey-based Funds Partner at law firm Mourant Ozannes, said:

"It seems that there are hopes for some relief from AIFMD regulation post-Brexit when the UK is outside the EU. Almost 100 percent of respondents told us AIFMD has made raising funds from EU-based investors more challenging. Couple this with survey results revealing that limited and general partners expect Brexit to result in greater investment from UK-based investors and declining investment from Europe, and it's clear that UK private equity fundraising will become easier in the post-Brexit environment, whilst European fund raising will remain challenging."

Key Insights

More than two thirds of UK GPs and half of EU GPs (excluding the UK) deferred fund launches following the Brexit vote, while almost 9 in 10  private equity professionals globally are positive about the PE outlook over the next 12 months. Almost half of PE professionals predict the UK’s decision to leave the EU will decrease PE investment in European companies, compared to only a third that believe it will decrease investment in UK companies. Almost all of GPs have found it more challenging to raise funds from EU investors since the introduction of AIFMD.

The research is based on 260 limited and general partners from North America, Europe and Asia and was undertaken by Mourant Ozannes in August 2016.

Sources: Privateequitywire, BLGlobal

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