73 per cent by value and 60 per cent by deal number of UK private equity investment went to London and the south east in 2014 and Q1-Q3 2015, a new report from the British Business Bank has revealed.
This is despite the fact that the capital and the surrounding areas are home to only 34 per cent of the nation’s businesses.
When investment by other equity providers, including crowdfunders and individual investors are taken into account, these proportions reduce slightly, to 71 per cent by deal value and 53 per cent by deal number.
Efforts have been made by the British government in recent years to encourage investment in the north of England in particular, and there are a number of firms, including NorthEdge Capital and Palatine Private Equity, that focus on this region.
Other European countries also report significant regional discrepancies. In Italy, for example, 90 per cent by value and 68 per cent by deal number of business investment in 2014 went to the north of the country, according to Italian private equity industry body AIFI.