Politicians heaped praise on the private equity industry yesterday in their bid to woo business ahead of next year’s expected general election.
Conservative deputy prime minister Oliver Dowden and Labour shadow economic secretary to the treasury Tulip Siddiq both paid court to PE delegates at a hotel in London’s Marylebone, where the British Private Equity & Venture Capital Association (BVCA) was hosting its annual summit.
Despite the buyout industry coming under fire in recent years for several high-profile takeovers, such as the PE-backed acquisition of supermarket chain Asda, the BVCA conference underlined the efforts now being made by MPs in Westminster to win over investors and convince the City of their economic competence.
One lobbyist at the event said: “There’s a sense that politicians are coming round to seeing PE’s point of view. GPs [general partners] are sitting on billions of pounds in dry powder and both parties are realising the potential of that in funding their plans to boost the economy.”
Labour’s Siddiq said: “We’ve very conscious there will be an election in the next year, and [shadow chancellor of the exchequer] Rachel Reeves and I are thinking very deeply. We are trying to be more sophisticated about what our offer is if we are in government.”
The MP added that the private sector would play a “very huge role” in helping to achieve its priorities, such as addressing regional inequality and financing its green prosperity plan.
Labour leader Sir Keir Starmer has held talks with senior figures from the likes of Blackstone, Advent and Brookfield Asset Management this year.
READ MORE: PE bosses meet Starmer and Reeves
Oliver Dowden, who also met with senior PE figures in Downing Street earlier this summer, took to the stage yesterday as well to make his pitch to buyout bosses.
“Private equity and venture capital is the success story that has formed a thousand other success stories,” he told delegates.
Dowden said: “The impact you have on our country goes far beyond growth: your backing for UK companies helps to build the infrastructure we need, to pay the pensions our retirees rely on, to deliver the returns our savers have worked hard for, to generate the tax revenues to power our public services, and of course, to stimulate the innovation needed to meet our most important goals.”
Chancellor Jeremy Hunt set out Mansion House reforms in July that included a series of measures designed to unlock pension investment in private companies whilst also increasing returns to pensioners.
READ MORE: Why Hunt’s reforms are of huge importance, according to the BVCA boss
Siddiq said yesterday that the Labour Party was “closely aligned” with those reforms mentioned at Mansion House.
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https://www.penews.com/articles/politicians-go-on-charm-offensive-at-british-private-equity-summit-20231006
