British exposure: The 9 PE investors from the EU most active in the U.K.
June 27, 2016
What many considered unthinkable is now a fact: the U.K. has voted to leave the EU. Surely, it will be some time before the full effects of the Brexit are felt. But in reality, the looming specter of the vote was already influencing PE investor activity coming from the rest of Europe into the U.K.
Deal count in the U.K. for PE investors from EU member states has been on a gradual decline ever since 2Q 2015, according to the PitchBook Platform, dropping from 19 deals down to 12 during 1Q 2016. And so far this quarter, a mere 10 transactions have been executed—quite possibly a result of firms holding off on deals in the face of an uncertain future.
From the need to restructure international trade deals to the likely presence of a new face at 10 Downing Street, Britain’s exit leaves many potential sources of investor anguish. The plunge in the pound that immediately followed the vote could be of particular concern for European firms with British portfolio companies, considering most of those companies are valued in pounds but LP agreements and returns are logged in euros.
To give you an idea of the continental firms that could be most affected by the Brexit’s geopolitical upheaval, here’s a list of the PE investors from EU member states that have been most active in the U.K. since 2011, along with their deal counts (incl. add-ons):