Over 40% of SME and small businesses in the UK have reported significant disruption to their business trading due to the Coronavirus pandemic, whether that be reducing numbers of staff or working hours. The latest figures from the ONS also paint a bleak picture of things to come with over £34 billion in Government loans now provided to prevent businesses from going under due to the outbreak.
Private equity investment has been one of the only areas able or willing to provide growth finance to businesses looking to grow during lockdown. It is also a sector that has provided vital survival finance to firms unable to access any Government support.
IW Capital – a leading SME investment firm – has funded over 40 growing small businesses since 2011, including Borrow my Doggy and Brewhouse and Kitchen. In the past few months they have supported a number of businesses looking to grow through lockdown as firms from a variety of sectors who are looking to carry on with - or alter - their plans. They have also supported a number of their sector agnostic portfolio through one of the most challenging economic periods in memory.
CEO of IW Capital - Luke Davis is keen to discuss:
Predictions for the winners and losers in the world of business post-Covid
Prescriptive advice for those who have survived the crisis on how to grow and scale
Methods of securing and deploying vital growth and survival finance
Luke Davis, CEO of IW Capital and private equity expert, discusses the what the last two months has meant for private equity and small businesses and what the future holds:
“The havoc caused by Covid-19 in the public has been almost mirrored in the business community and has put an end to the truism of survival of the fittest. The shift in our role as a private equity finance provider from offer growth to mere survival in many cases has been significant and for those looking to expand and scale it has meant a huge reduction in the amount of available finance - something that even previously was not widely available. It has, however, highlighted the importance of effective planning and risk management in a business. While no one could have prepared for this period, ultimately, the firms that have survived are the ones that were best prepared for disruption and had sound underlying propositions.
As private finance providers, we have a responsibility to not only support growing businesses that are seeing this period as an opportunity but also businesses in industries that may be struggling and that are unable to access Government support.”