‘Scary’ market turmoil makes investors wary of UK private equity
Pension funds and insurers are “spooked” about committing cash to UK-focused private equity groups, in a sign that chancellor Kwasi Kwarteng’s crisis-provoking fiscal plan has also dented Britain’s appeal for some global investors.
The pound’s fall to an all-time low against the dollar this week made it cheap for overseas investors to commit money to UK buyout funds that target British businesses. Even so, industry figures said it is getting harder to persuade them to bet on the country.
A continental European asset manager declined to invest in a UK private equity fund, citing “the current turmoil” in the country and saying they would not look at British funds for the foreseeable future, said Sunaina Sinha Haldea, global head of private capital advisory at Raymond James.
This story originally appeared on: Financial Times - Author:Kaye Wiggins
