Two thirds of U.K. GPs deferred PE fund launches after Brexit vote


A majority of private equity firms in the United Kingdom and many across the continent delayed fund launches following the Brexit vote, and a sizable number of them anticipate European startups will see less investment as a result of the election-box decision in the U.K. to leave the European Union, according to a study.

The work also found that about two in five U.K. general partners are considering changing the jurisdiction of their funds.

The observations are part of the survey of 260 GPs and LPs released by the law firm Mourant Ozannes. Mourant Ozannes is an offshore law firm offering advice on jurisdictions such as the Caymen Islands and the British Virgin Islands.

The research gathered views from GPs in Europe, Asia and the United States.

What it discovered is that more than two thirds of U.K. GPs deferred fund launches in the wake of the June vote along with half of GPs based elsewhere on the continent. As a result, 41 percent of U.K. GPs are looking at changing their fund’s jurisdictions. Seventeen percent of E.U. GPs are thinking similarly, the study found.

Perhaps most concerning to private equity in Europe is the belief by 47 percent of the respondents that the Brexit vote will lead to a decrease in investments in European companies. Fewer – a third – anticipated an investment reduction in U.K. companies.

A substantial number of the private equity executives expect an increase in investments outside the European region.

Correction: The original version of this story misstated the number of GPs and LPs interviewed for the study. It is 260.

 

 

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