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Investors ready for “roaring” recovery in 2021

Green sector, MedTech and Retail set to receive most investor interest – new research.

Luke Davis, CEO of IW Capital discusses the direction of wealth post-pandemic.

Two weeks on from the most significant reopening of the UK economy this year, the future is looking increasingly bright. Economists from banks and other organisations have en masse raised their predictions for UK economic growth in 2021, with some reaching as high as 8% – which would be a post-war record. 

With further relaxing of restrictions to come over the next two months, consumers, businesses and investors alike are looking forward to a “roaring” period of growth and spending. This boom in investing has, it seems, already begun, with data from Beauhurst indicating that UK tech saw a record quarter for investment in Q1 hitting £4.45 billion.

To understand the sectors set to benefit from the rising sentiment, IW Capital, a specialist SME private equity house, have commissioned research into the desires of investors in 2021.

Key statistics: 

– Nearly half (45%) of UK investors will back green or sustainable companies in 2021

– 44% of investors are now looking to back UK-based companies, instead of global firms 

– 19% of investors believe the coronavirus pandemic has opened more investment opportunities than it has closed 

–  36% are backing stocks and shares an investment option

–  34% are investing in life sciences, including Biotech, Medtech & Pharma, a 160% increase from 2019

–  29% of UK investors will back online retail businesses and technology 

–  Over a quarter (27%) of investors are investing in property 

–  26% will invest in Fintech 

–  18% of investors will back the creative industries 

–  16% are investing in the hospitality sector

Luke Davis, CEO of IW Capital: 

“Economic growth is driven by any number of factors but seeing consumer sentiment and investor support so high gives a great indication of what is to come this year. People want to get out and spend, businesses want to grow and investors want to help them do that, it’s a perfect storm for rapid growth. 

“The pandemic has undoubtedly had an impact on where this investment is going, with healthcare and pharma dominating and green sectors leading the way in terms of popularity. It has also been a big year for online retail with the data reflecting this. What is also encouraging is the demand for hospitality investment as that sector look to reopen.

Pubs will bounce back along with restaurants and other hospitality, no one will want to stay at home after the year we’ve had and I really believe that. Working with local residents on redeveloping the pub and hospitality venue Rockwater Hove has shown me how much people want, more than ever, a place to come together as a community. We are not out of the woods yet, but the sun will almost certainly be shining when we are.”

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