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Professionals in the private equity industry believe a change in the UK government is the bigger risk to their investment appetite than a no deal Brexit.
Research by independent financial risk advisory firm JCRA found that 48% said a new government is the biggest risk, compared with just 20% of those who selected a no deal Brexit.
Ninety per cent of those surveyed said they were actively focused on making new investments in the UK in 2019. None were concerned about higher rates as a risk to their investment appetite or the availability of debt finance in private equity. However, 20% were anxious about currency volatility and the weakness of the pound.
Benoit de Benaze, head of private equity at JCRA, said: "It is very encouraging to see that the industry is still committed to the UK despite market uncertainty and that there is very little concern about the prospect of higher interest rates in the near future. The response on current concerns chimes with our own experience and client enquiries.