New research suggests that post-Brexit British investors currently have a greater risk appetite and are seeking fresh investment angles.
What’s more, nearly half of the British investors questioned feel that Brexit will have a positive impact on their investment strategy, with 22% not expecting any effects over the coming 12 months.
Many investors feel the biggest investment opportunity in 2017 lies in private equity investment into the UK’s private sector. And, one in four investors believe that innovation and technology are the UK economy’s two greatest strengths in promoting economic growth.
The research also highlighted the growing use of tax efficient schemes such as EIS in 2017.
The backdrop to the research is the triggering of Article 50 and the start of the 2017/18 financial year on 6 April. It was commissioned by London-based investment firm IW Capital which facilitates equity and debt investment into the UK’s high-growth SMEs. The firm has facilitated over £100 million worth of investment opportunities into Britain’s SME landscape through the Enterprise Investment Scheme (EIS).
Luke Davis, CEO of IW Capital, said: “The performance of the UK economy since the EU referendum has been extremely impressive, driven in no small part by our country’s diverse collection of SMEs that account for 99.9% of all private companies. This research demonstrates that the continuing growth of the private sector is attracting the interest of the nation’s investors, who are clearly embracing the future of Brand Britain and the undiscovered investment potential that lies ahead.
“With investors increasingly looking to tax-efficient investment schemes as a means of investing into the private sector in the new tax year, it is important the Government considers new reforms to ensure these schemes are both accessible to investors and targeting scaling businesses most in need of growth capital. Importantly, Brexit frees the UK from European state aid regulations, and the Government should use this as an opportunity to expand initiatives such as EIS that has previously been limited by EU policies.”