Business News Round Up (05/08/2021)
UK private equity investment at highest level for five years
New research from KPMG has revealed that private equity investment, both in terms of value and number of deals, has reached levels not seen since 2017 in the first half of 2021. A total of 785 deals were completed for an overall value of GBP73.7 billion pounds after factors such as the vaccine rollout and loosening restrictions increased optimism, while the depressed values of UK companies further fuelled demand for deals. With optimism among business leaders continuing to rise and several high value deals going through in July and the start of August, this record investment looks set to continue, with this in mind, investment specialists IW Capital has commissioned national research to determine the sectors investors are looking to back. The data indicates that sectors in green and sustainable fields are set to benefit from significant investment backing in the next year while firms in more scientific fields, who have enjoyed increased exposure over the last year and a half, are also set to benefit. It also suggests that hospitality and the creative industries, perhaps worst affected by the economic impacts of the pandemic, are firmly on the radar of UK investors.
University of Edinburgh records ‘highest’ number of student start-ups
Students at the University of Edinburgh have created the ‘highest’ number of start-ups ever for a leading UK university. Data for 2020/2021 shows the university created 100 start-ups or spinouts during the lockdown year – which is the higher than any of the 24 Russell Group universities have previously recorded. Figures from the University of Edinburgh appear to point to a new milestone although data from other universities across the UK has yet to be published by the Higher Education Statistics Agency (HESA). The achievement is yet more remarkable for the fact that most students have been forced to operate off campus and using remote tech platforms owing to the effects of the pandemic. Of the 100 start-ups, 43 were founded by women, and 21 of the businesses define themselves as social enterprises, meaning they exist to benefit society. Forty-five of the companies were launched by current or recent undergraduate students, while 55 were founded by postgraduates.
UK – Businesses falling behind international counterparts on workforce diversity KellyOCG
UK businesses are still not doing enough to remove barriers and create opportunities for underrepresented groups, and are falling behind international counterparts, according to research from KellyOCG. The research found that more than half of senior business leaders surveyed in the UK, or 52%, say their diversity, equity, and inclusion (DEI) strategy only “pays lip service to supporting talent from underrepresented groups and doesn’t provide any helpful support in practice.” KellyOCG’s research showed that 66% of UK firms say they have programmes that support progression and development of underrepresented groups once they are in the job. This is below the global average of 74%. Meanwhile, 44% of UK businesses are tracking or reporting on the success of programmes that remove barriers preventing underrepresented groups from accessing the work in the first place, the lowest out of all major countries surveyed.
Praetura Group helping boost SME growth through launch of new division
Manchester-based debt and equity capital provider to SMEs, Praetura Group, is expanding with the launch of a new financial division which will create 10 jobs. Praetura Invoice Finance (PIF) is designed to unlock flexible finance for UK-wide SMEs from a broad range of sectors by helping them to obtain funding against unpaid invoices. This will allow SMEs to free up resources that can be used to fund working capital or reinvest in the growth of the business. PIF’s launch coincides with an uptick in demand for commercial funding, as businesses look to grow following the pandemic, and as the Government scales back its COVID-19 business support. In the first quarter of 2021, 42% of SMEs accessed external finance, up from 30% at the beginning of 2020, according to the SME Finance Monitor Q1 2021 published by UK Finance. PIF will complement Praetura Group’s other lending divisions and will be led by managing director Ray Lowrey, who has more than 30 years’ experience in commercial finance.