US personal fairness agency Fortress’s £9.5bn transfer for UK grocery store Morrisons has resulted in tensions between public and personal fairness buyers, with a few of Morrisons’ largest shareholders pushing again on the deal, whereas considerations are mounting about the £6.5bn takeover of Meggitt by US rival Parker Hannifin.
Peter Harrison, chief govt of Schroders, final week stated the funding big doesn’t “object to private equity deals per say” however argued that “what we must not get into is people taking short-term gains when the long-term value of the business is not being recognised”.
Foreign funding in UK start-ups additionally rocketed this year, with a file £5.1bn funnelled into new firms in the first three months of 2021.
Mr Johnson and Mr Sunak’s letter comes forward of the Investment Summit in Downing Street in October. In the letter, the pair stated that the UK can “now plan for a strong and sustained economy” and shareholders should play their half.
“While we are glad that international investors prize UK assets, and are working hard to attract even more inward investment, we also want to see UK pension savers benefiting,” they stated.
“We recognise that there is no single ‘right answer’ for the amount that should be invested in these long-term asset classes. Some funds are already highly active; some – for good reason – are not. You will know best what is right for your business. But we strongly believe this is a question that all institutional investors should be considering.”
Pat McFadden, Labour’s shadow financial secretary to the Treasury, stated: “Any change to how people’s pension funds are used requires careful consideration and consultation, not a rushed announcement. You can’t just do this by issuing an appeal from the Prime Minister and Chancellor, with an announcement that is as baffling as the constant disagreements between the two.”