The European Investment Bank has cut deals with UK venture capital and private equity firms by over two-thirds since the Brexit vote. A document seen by the Financial Times shows that while the UK accounted for 27% of the bank’s equity investments in 2016, the total crashed to just 8% in 2017.
According to the EIB report, France and Germany have overtaken the UK as the main recipients of capital from the bank.
“The reason the volume has gone down is not because the UK is not any longer allowed to be the recipient of investments,” says the EIB. “There is a decrease that comes as much from a decrease in demand, as well as complexity of concluding the operations and deals because we have to deal with issues we didn’t have to deal with before because of the uncertainty from Brexit.”