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A government will to relaunch the city of London with a new system of actions negotiating in private companies has been rejected by venture capital and investment capital leaders as useless and compared to a “new version” of the market Junior objectives in the aeration of the United Kingdom.
The private system intermittent securities and capital exchanges (fish) – proposed by the previous conservative government and supported by the Chancellor of Labor Reeves – would allow investors of private companies to sell shares on regulated scholarships.
The London Stock Exchange Group is one of the companies that plans to operate a place of fishing for fish, where actions could be discussed on a limited number of days each year.
But investors wondered how much there would be a demand for the system, adding that the bosses of fast growing companies would be reluctant to opt because they could lose control of who has participation in their business.
“I simply do not see who will use it,” said a partner of a leading venture capital company. “It is a bold solution to a problem that is much more complex than the protagonists are not willing to understand.”
Hussein Kanji, who founded Hoxton Ventures, said: “What problem does it solve?” The new system would be problematic for donors, because the trade of stocks on private scholarships would attribute a price listed to their portfolio companies which “would probably be low and possibly volatile,” he added.
The Treasury said that fish would provide rapidly growing businesses an incentive to base itself in the United Kingdom and act as an “intermediate step” to possibly register the London public markets.
The London Stock Exchange has undergone investment outputs and assessments of the Dulne company, with high -level groups such as Chip Designer Arm Holdings floating abroad and public companies such as the Paris Flutter group moving their Main announcements in New York.
Sales of secondary action in unlisted companies have become prevalent as a business wait longer To list, let investors find other ways to withdraw.
In the United States, the NASDAQ private market has enabled investors and employees to exchange business actions since 2013, while platforms such as Crowdcube, Seedrs and JP Jenkins allow the trade of shares to United Kingdom.
But several investors in venture capital and investment capital-to whom the government said that fish would be “of interest”-told Financial Times that they were unlikely to use the platform to sell Actions in their own portfolio companies or that they did not think that it did not think that it attracts high quality companies.
The directors general of high-level and fast-growing start-ups “want to control fiercely” which has their actions, in particular to prevent people from pouring actions on the first day of a possible public inscription, added the partner of venture capital.
A person from a large international investment capital company added that “it would be difficult to manage” to work with the shareholders they did not know.
The Financial Conduct Authority proposed to allow “very limited” companies to set restrictions on the types of investors who can buy their actions, including in certain situations specifying a list of “specific people”. He proposed to allow companies to limit the price range in which their actions could negotiate.
The International Stock Exchange (TISE) based in Guernsey already has a service for companies to manage auction of their own shares without a broker. Vermaas, CEO of TISE, said that on the basis of his experience, he doubted that fish succeed.
“We are skeptical about the rules [for Pisces] Go far enough to make it a success, because companies will always have any disclosure requirements, “he said, adding that” they will have many of the costs of a full list “.
“Fish is not much more than a new version of AIM,” said Vermaas, referring to the London junior stock market which has suffered from a drop in lists and low liquidity, despite less strict rules that the main market of the London Stock Exchange.
The FCA said that fish “will open the door to more opportunities for investors and could transform the way private companies will access investors and develop”, while the Treasury said that the proposal was ” ‘part of.
Charles Hayes, world co-chief of private capital in the Freshfields law firm, said that “for each [buyout executive] Who says to you: “I don’t want to face thousands of investors”, the travel management is clear to the increase in roads to liquidity and. . . wider access to private capital ”.
