UK M&A fuelling 'relentless' de-equitisation drive

Minimal IPO activity

Elliot Gulliver-Needham
clock • 2 min read

UK M&A has continued at a strong despite minimal IPO activity, but “the pace of de-equitisation is relentless”, Peel Hunt has warned.

In a note from Charles Hall, head of research at the investment bank, he warned that UK M&A activity had accelerated towards the end of 2023 and is set to continue into 2024, which could lead to fewer publicly listed companies. Shareholder activism and M&A surge is a mixed blessing for investment trust sector He argued that the "key driver" of this problem had been the 30 consecutive months of outflows from UK funds, leading to selling pressure and declining valuations. "The negative trend is self-fuelling, as the poor performance of UK equities makes them appear less attractive to...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week