A new wave of M&A activity is looming, as US-based private equity firms look to profit from a weakening sterling, which may carry both risks and opportunities for listed UK equities.
Favourable regulatory conditions, a weaker pound and low valuations means investors are eyeing the divergence between the real underlying value of companies listed in the UK and their share prices. According to business advisory firm Trachet, private equity firms have turned towards the UK as low valuations have produced "fertile ground" for acquisitions at a discounted price. Claire Trachet, the firm's CEO, said: "American investors are looking to capitalise on the weaker sterling, making companies now nearly 20% cheaper to buy in the UK - with tech and telecoms likely to be targete...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
