The report, A Unified Strategy for Growth and Prosperity, supported by EY, is based on comprehensive data analysis and insights from over 30 qualitative interviews with UK businesses, investors, advisers, and market participants.
Key Findings of the Report
The Evolution of UK Capital Markets
The UK’s capital markets play a crucial role in the national economy—providing funding for businesses, creating jobs, supporting homeownership, and strengthening pensions.
However, in line with global trends, the structure of the UK’s capital markets is undergoing significant change.
The research highlights that while public markets remain a key source of funding, fewer companies are opting to list, and more are choosing to leave. Additionally, businesses are staying private for longer, making the decision to go public more complex than before.
At the same time, private capital markets in the UK are expanding rapidly, now providing £1.2 trillion in funding. Since 2013, venture capital has grown at a compounded annual rate of 20%, private equity by 11%, and private credit by 43%.
The sustained expansion of venture capital and private equity has also fueled the overall growth of UK capital pools. These sources accounted for 15% of newly issued capital in 2024, up from just 5% in 2013. While the proportion of capital raised through public markets has declined, it has still grown at an annual rate of 4% since 2013.
Click here to read the full article