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| Hello. In today's Daily Pitch, we look at the reaction of private markets to the UK's Autumn Budget, PE deals in Europe's legal industry and GPs' private wealth crush. |
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| Private markets spared the worst by an otherwise lackluster UK budget |
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| UK finance minister Rachel Reeves (Leon Neal/Getty Images) |
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By Emily Lai and Leah Hodgson
Private markets can breathe a sigh of relief following the UK Autumn Budget, but many still believe it has not gone far enough to tackle deeper issues in the market.
In the run-up to the budget, presented by UK finance minister Rachel Reeves on Wednesday, there had been rumors of an increase in capital gains, exit and wealth taxes.
After months of speculation and leaks, however, none of these policies materialized. Instead, much of the focus of this budget was on personal taxes, offering comfort to businesses that were hit hard in last year's iteration.
But no news isn't necessarily good news.
"In recent months, concerns over rising taxes have prompted many entrepreneurs to consider relocating abroad, with some already putting plans in motion. For those still weighing up their options, this announcement may offer reassurance and encourage them to stay. However, for others, the changes may come too late or not provide enough of an incentive," said Meera Shah, head of M&A advisory at accounting firm Buzzacott.
The budget did deliver some cheer for the London Stock Exchange, which has been struggling to retain companies and encourage new listings.
Reeves introduced a stamp duty holiday under which investors are exempt from paying the 0.5% tax on purchasing shares of newly listed companies for up to three years. The UK government has also made a push for more personal savings to be used for investments.
However, the market is divided on the effectiveness of the new policies.
For startups, Reeves said that the government would widen the eligibility criteria for the Venture Capital Trust and Enterprise Investment Scheme programs to allow investors to follow on as companies scale.
While these changes have been embraced by some investors, others believe that the government's budget is heading down the wrong path.
"The government thinks it can tax its way into growth, but this budget has just set the stage for a shrinking economy," OpenOcean partner Sam Hields said. "There needs to be an urgent rethink; otherwise, Rachel Reeves will come to the next budget and find there aren't many businesses left to tax." |
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| A message from Enterprise Ireland |
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| Ireland’s cyber sector thrives as firms draw global VC with AI innovation |
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Download the new report powered by PitchBook data on Ireland’s cybersecurity sector, which is rapidly emerging as a global VC magnet, fuelled by Enterprise Ireland’s support, world-class talent, and a maturing innovation ecosystem. Over the past decade, Ireland has become a launchpad for high-growth homegrown firms and a leader in next-generation solutions.
Today, Ireland hosts over 140 pure-play cyber companies. Standouts like Tines, Siren, UrbanFox, and Cytidel serve global enterprise and government clients with AI-driven threat detection, investigative intelligence, vulnerability prioritisation, and secure data tech. This pipeline attracts Series A/B capital from top VCs, signalling maturity and positioning Ireland as a prime cybersecurity investment hub.
Read the report |
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• Growing interest from GPs is attracting fresh capital to the private wealth segment, but existing relationships with institutional LPs remain the most important. Read more
• Many investors are holding back as France endures one of its longest periods of political turmoil, but the maturity of the country's private markets is lessening the impact. Find out more
• PE investment in the European legal services industry has hit a record €1.9 billion this year as investors target niche, tech-ready firms in a fragmented market. Read more |
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Smart reads that caught our eye.
• London's struggling stock exchange now falls behind Mexico and Oman in IPO fundraising volume. One of the world's brightest IPO venues has lost its luster. [Bloomberg]
• Southeast Asia's energy demand is rising, but renewable resources can't keep up. Despite plenty of potential in the region, renewables infrastructure isn't enough, which is why a new initiative for a connected ASEAN power grid is so important. [Fortune] |
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| Since yesterday, the PitchBook Platform added: |
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642
Deals
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2153
People
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872
Companies
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26
Funds
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| The Daily Benchmark: 2018 Vintage European VC Funds |
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