Member

I recognise the cautionary tales previously shared by the noble Lord, Lord Vaux, and my noble friend Lord Sikka but, for the Government’s part, we recognise the positive role that private equity can play in supporting growth, by providing capital, as I have described, and helping struggling firms restructure to preserve jobs and economic activity. Private equity and venture capital-backed businesses directly generated nearly £200 billion of GDP in the UK in 2025. For many companies, private equity plays an essential role in supporting firms to scale up from the venture capital stage to listing on a public market. I also note the finding in the Pensions Investment Review that, where pension schemes are managing private market portfolios, they tend to operate a significantly higher domestic weighting than in more liquid asset classes.