Mon, Jan 20, 2020
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Brexit hits venture capital in the UK

Friday, November 01, 2019

Bailey McCann, Opalesque New York:

As Brexit negotiations drag on, LPs and GPs are looking more closely at the impact to venture capital. As an asset class, venture capital is typically uncorrelated to broad geopolitical trends that might move markets, but according to delegates at the recent Opalesque European PE & VC Roundtable, Brexit may have more of an impact than investors expect.

"The UK market has been effective particularly in growth capital and late venture capital and that is now changing," said Dr. Jim Totty of Earth Capital. "The UK will probably lose access to the European Investment Fund (EIF). The EIF had 140 LP positions in the UK, right across the spectrum, everything from life science to the digital sector, and the creative industries, for example." He adds that it's not fully clear what the scope of the potential impact will be.

Some industries could end up doing better than others. Dr. Totty said that industries like digital media that have less overhead may be able to thrive in the UK as Brexit continues to be negotiated. In other areas like life sciences, the greatest strength is likely to be seen in areas where early stage funding is already very well understood and institutional investors are willing to fill any gaps in VC funding.

If the UK enters into a deep recession as a result of Brexit or other economic concern, delegates expect that corporate venture capital will also slow down. Corporate venture capital has increased in rece......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing: For Howard Marks, investing is like a game, Hedge fund Lone Pine Capital LLC takes big stake in Under Armour, Merit Medical shares rise after hedge fund Starboard discloses 9% stake[more]

    For Howard Marks, investing is like a game From Institutional Investor: Investors can take apply lessons from games like backgammon and poker to their day jobs, according to Oaktree Capital Management's Howard Marks. Marks - who has enjoyed pursuits like Old Maid and gin rummy since

  2. Siguler Guff closes Small Buyout Opportunities Fund IV at $1.58bn[more]

    Laxman Pai, Opalesque Asia: Private investment firm Siguler Guff & Co. has raised $1.58bn for a fourth fund - Small Buyout Opportunities Fund IV - to invest with small buyout managers and directly in their portfolio companies. The New York-based multi-strategy private equity investment firm

  3. J.P. Morgan makes strategic investment in tech company for alternatives[more]

    Laxman Pai, Opalesque Asia: J.P. Morgan has taken an equity stake in Arcesium, an investment-management technology business that D.E. Shaw & Co. launched as an independent company in 2015. New York-based Arcesium LLC is an investment management technology and services firm, offering services i

  4. People: Hedge fund godfather Lord Fink to chair HSBC backed tech start-up Bud, Swiss investment boutique appoints CIO & CCO[more]

    Hedge fund godfather Lord Fink to chair HSBC backed tech start-up Bud From Standard: Hedge fund tycoon Lord Fink has been named chairman of bank software start-up Bud, which is backed by HSBC and Goldman Sachs. Fink, dubbed the "Godfather of hedge funds" for his role at Man Group, inves

  5. Legal: Hedge-fund Felon hid criminal past to woo crypto investors, U.S. charges, Partners Group sued over alleged breach of non-disclosure agreements[more]

    Hedge-fund Felon hid criminal past to woo crypto investors, U.S. charges From Bloomberg: A Toronto man who served time in prison after his hedge fund collapsed later concealed his identity and criminal past to defraud investors of $30 million through an initial coin offering of digital