Private equity investments in small businesses hits two year high

Britain's small and medium enterprises "in rude health" despite ongoing concerns about global economy

Private equity investment into Britain’s small and medium businesses reached a two-year high in the first half of 2015, according to statistics published by Cass Business School and private equity firm Lyceum Capital.

Despite larger UK businesses having been hit hard by the Greek debt crisis and continuing fears over a slowdown in China, the latest figures suggest smaller enterprises are attracting increased attention from investors.

In the first six months of the year, 80% of UK private equity transactions in the £10m to £100m region involved purchasing a stake in a company worth less than £50m – with the total value of transactions standing at £825m, the highest level since 2013.

Scott Moeller, professor at Cass Business School, said:

“We expect 2015 to be the third year in a cycle of strong private equity activity. Indeed, lower mid-market activity has been remarkably consistent in the past two years, with less volatility than other equity and financial markets.”

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