Brexit, in the UK, private equity is down 40% in the first six months

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The Brexit affair continues to place itself in the limbo between the hypothesis of an umpteenth extension that could happen in the coming days from the European Union and early elections before the end of the year. In the total uncertainty about the relapses, one thing is certain: financial transactions are moving from the City of London to continental Europe, in particular those of private equity that in the first half of this year have fallen by 40% in Great Britain favoring countries like France and Spain.

According to data collected by PWC, compared with a fall in the number of transactions in the UK by 35% at 384 from 594 in the first half of 2018, the value fell by 41% to 30.6 billion euro. On the other hand, the numbers recorded by European countries in particular from France, which in the same period saw investments increased by 28% and in Spain by 33%.

"Many operations are moving from the City to continental Europe – confirms Francesco Giordano, PWC partner – just think that the number of deals in Europe has increased by 10% if Great Britain is excluded".

Private equity slows down
In general, the figures for the current year are showing a slowdown if compared with those of 2018 at the global level when record numbers were registered for private equity with investments of 258 billion euros and 2971 operations. This year the signs of uncertainty due to the war of duties, the European elections last May, the Brexit and the general economic slowdown are also affecting private equity which in the first half of this year recorded a decline in investments at a global level of 30% to 179 billion euro and transactions for 2,399 (-19 percent). "Last year was particularly active and the comparison risks penalizing a situation that is showing itself to be complex – adds Giordano -. The second half of the year, on the contrary, is showing signs of recovery that bode well ».

Italy behind Spain and France
In Italy the figures are stationary with an increase in the number of transactions by 4% compared to a decline in the value of 12%: «In the first half of the year there was a lot of transactions, but what was missing were the mega deals that they are usually made by international investors because in Italy there are no medium to large operators», Adds the PWC partner.