The Quest For Cash – Britain’s Hidden £Billions

Experts estimate that in excess of £50billion is ready and waiting to fund growth in British Businesses – but it isn’t in the banks.

Over the last four years the most common theme coming out of the financial crisis is the lack of cash for investment in British business.  The banks have simply been too cautious to lend, government doesn’t have it and even wealthy companies are hording their reserves in case times get worse.

Where is the cash?  It is tied up in Britain’s Private Equity community – often referred to as Venture Capital.  

Industry experts estimate that over £50 billion is ready to invest in British and European businesses. Private Equity (PE) amasses cash from pension funds, investment companies and a surprisingly large number of ‘family offices’ – home for the cash of the über-rich around the world.   These trust PE to invest their money and give greater returns than other investments.

David Titmuss Partner in Equity Quest and a veteran of PE backed businesses said, “Its crazy, the money is there ready and waiting.  Private Equity Firms are crying out for new investments – they are looking for management teams who want to buy out their company and invest money to make it grow and prosper.”

Equity Quest has just completed an intensive study of the Private Equity community in London and found that it is surprisingly small but very powerful.  Titmuss, former CEO of Reader’s Digest – itself saved by Private Equity, said “There are just under 2000 Private Equity professionals in London.  They all work within one mile of each other so it’s not the City, its more like a village.  The key decisions are made by no more than about 150 people – the ‘elders’ of the village if you like, but they may hold a key to recovery in the UK.”

Equity Quest introduces CEO’s, directors and entrepreneurs to Private Equity.  It doesn’t get involved in start ups.  Equity Quest states that Private Equity is interested in the following types of business; businesses or divisions where there is great potential but the current owners wont or can’t invest and struggling businesses facing possible closure where a turnaround is needed. 

According to Equity Quest, Private Equity firms are staffed by Britain’s intellectual elite. Over 50% of all UK born Private Equity managers studied at either Oxford or Cambridge – more than any other industrial sector.  In their recent survey according to BDO, the leading accountancy firm, found that 94% of Private Equity professionals say that now is a great time to invest with 96% believing investment activity will increase.  They are just as keen to invest in distressed businesses as firms with great potential.  And with £50 billion in their war chest, they could just possibly bring much needed growth to the UK providing and protecting much needed jobs.

David Titmuss concluded, “If I was working in any company in the UK right now faced with poor investment, lack of confidence by the owners or in one where there is great potential I would be talking to Private Equity.  I have helped save three big businesses from closure and that means I have saved much needed jobs so even struggling firms could look to Private Equity as a solution. The problem is there is lack of awareness, misunderstandings about the role of Private Equity and a marked inability to communicate.  I guess that’s why we created Equity Quest – its good to talk.”