Fri, Nov 15, 2019
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. PE/VC: Private equity is the new stock, Private equity fundraising in the US hits all-time high, Foreign private equity firms lead $152bn blitz on London Stock Exchange[more]

    Private equity is the new stock From Institutional Investor: The traditional portfolio of stocks and bonds needs an alternative investment shake-up after failed monetary policy, according to executives at JPMorgan Chase & Co.'s asset management unit. "We are in an odd cyclical posit

  2. Opinion: Cliff Asness: It's 'time to sin'[more]

    From Institutional Investor: Timing the market can be "deceptively difficult," as quantitative investor Cliff Asness has pointed out before. But now, the AQR Capital Management co-founder believes that while factor timing is "an ugly thing," it is "about time we did some" - specifically when it com

  3. Investing: Hedge fund Whitebox places big bet on gunmaker Remington, Quant funds exit Japanese bonds in worst sell-off since 2013[more]

    Hedge fund Whitebox places big bet on gunmaker Remington From Reuters: Whitebox Advisors LLC, a credit-focused hedge fund, has been quietly capitalizing on Wall Street's ambivalence toward gun manufacturers by replacing some banks as a lender to Remington Outdoor Company. Whitebox

  4. Tech: Investors race to tech start-ups despite SoftBank stumbles, Two Sigma launches risk management software[more]

    Investors race to tech start-ups despite SoftBank stumbles From FT: Investors are planning to pour billions more dollars into later stage tech start-ups, even as Japan's SoftBank reels from a succession of faltering bets. Stephen Schwarzman's Blackstone plans to raise between $3bn and $4b

  5. Regulatory: Carried interest tax rules slated for 2020, official says[more]

    From Bloomberg: The Treasury Department is planning to issue regulations restricting how hedge fund managers can claim a valuable tax break early next year, a top Treasury official said. The regulations will likely bar money managers from using S corporations to take advantage of an exemption