Will the Spring Budget unlock the IPO and deal markets in the UK?

Jasper Van Heesch, director and private equity senior analyst at RSM UK, reacts to Spring Budget: ‘The UK chancellor has made a move to bolster private and professional investment in UK equity, including private capital, by launching the British ISA and the Private Intermittent Securities and Capital Markets (PISCES) consultation which will seek to establish a platform where private companies can trade their shares in a controlled environment. This could help to unlock the slow IPO market in the UK if valuations increase and market volatility subsides, the changes could help create a further uptick in IPO activity.

‘In addition, there are 1,900 UK-based PE-backed companies where their backers will be looking for an exit in the next four years; and this grew during 2023 when exits were down. So, a move like this could be helpful. 

‘Not only this but the knock-on effect could help address the significant gap in private equity and venture capital fund raising in the UK vs US. To put this into perspective, in the last two years there was 65% less buyout and 80% less venture capital raised in Europe, predominately in the UK, than in North America, with the US taking the lion’s share. These measures won’t solve the issue, but it may help to turn the dial and encourage more investors to consider investing in the UK ecosystem - boosting our globally competitiveness and supporting domestic growth.’