PitchBook-2023年三季度英国市场快照-英-21页_940kb

UK Market Snapshot Q3 2023 Summary

• Market Overview: The UK economy showed cooling signs in Q3 2023, with GDP growth at 0.0%, Consumer Price Index (CPI) inflation at 6.7%, and the bank rate at 5.25%. Overall valuations lagged behind European peers.

• Commentary: Government initiatives included the British Business Bank developing co-investment funds for startups and launching the £50 million Research Ventures Catalyst fund, focused on early-stage science-based technologies, primarily in London. However, challenges remain in regional capital access, as highlighted by Treasury Select Committee reports. Green shoots appeared in economic data, with inflation decreasing to 4.3% in October 2023, but the impacts of monetary policy and depreciation of the pound against the dollar (to £1.22 GBP/USD) persist.

• Equity Markets: Public equity markets performed poorly, with the FTSE 100 total return at 2.2% and YTD gain of 5.5%, underperforming indices like the DAX. Public listings were limited, with two PE-backed deals in Q3, but no exits were recorded. Market valuation metrics remained skewed, with multiple opportunities cited.

• Venture Capital (VC) Highlights: Deal activity increased in Q3, with high-valuation deals such as Conigital at £500 million. Notable exits included startups through mergers or acquisitions, but exit markets remained tepid. Fundraising was at 50.7% of 2022 levels, with Checkout.com leading with a £29.8 billion valuation. Cities like London and Cambridge dominated, though diversity is limited.

• Private Equity (PE) Highlights: Q3 saw significant deal and exit activity, driven by the Worldpay buyout. Fundraising was robust, nearing 2022 levels, supported by megafunds. Investments skewed towards later stages, with companies like EG Group valued at £15.1 billion. M&A and LBOs accounted for most transactions, providing liquidity through exits.

• City and Geographic Comparison: London remains the dominant hub for private market activity, accounting for most deals and investments. The heatmap shows varying levels across UK cities, while European cities like Paris and Berlin are comparable for reference.

• Credit Markets: Data includes loan volumes and yield spreads, indicating moderate leverage, but specific figures highlight trends in high-yield and syndicated loans, reflecting broader economic pressures.

• Data Notes: All data is as of September 30, 2023, derived from reports by PitchBook Data. Download additional reports from specified sources for deeper insights.