Private equity investment continues to rise

Growth businesses are likely to benefit from a further spike in private equity funding in early 2005, with both private investment networks and front line venture capitalists predicting an increase in deal flow.

New research from accountancy group Deloitte indicates that venture capital groups are expecting to witness a sustained high level of investment over the next six months.

According to Deloitte, companies operating in the support services, leisure, financial services and healthcare sectors are particularly likely to benefit from such investment.

Further evidence, meanwhile, comes from private investor network Hotbed, which focuses on deals worth between £500,000 and £5 million. ‘There is plenty of appetite [amongst private individuals] to invest at present,’ director Claire Madden informed Deal Alert, and the challenge facing the industry is to ‘find a way through which these people can back early-stage and growing companies’.

In 2004 Hotbed’s members pumped a combined £26 million into a range of ventures from hotel projects to smoothie manufacturers.

Sara Williams

Sara Williams

Sara Williams was executive chairman of AIM-listed Vitesse Media (the original publisher of GrowthBusiness.co.uk), the company she started in 1997. A former investment analyst with Kleinwortt Benson, Sara...

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