Investment Sector

The EOB sector in the UK offers a broad spectrum of investment opportunities.

THE SECTOR

UK EOBs generate a turnover in excess of £30 billion, representing around 4% of the UK’s GDP. The number of EOBs is growing at an annual rate of about 10% with the EOB sector generally outperforming more traditionally-structured firms during times of recession

PRODUCTIVITY

Quoted EOBs have outperformed FTSE All-Share companies by an average of 10% each year since the Employee Ownership Index began in 1992 (Source: Capital Strategies Ltd). They have also increased productivity year-on-year by 4.5% on average, whereas the UK economy as a whole has been flat

CROSS PARTY SUPPORT

Successive UK governments have promoted employee ownership, and this looks set to continue. The current coalition government introduced a number of attractive tax measures in the 2014 Finance Bill.

UNIQUE OPPORTUNITY

This well-performing sector seeks alternative financial support as more traditional funders often don’t understand it and are therefore averse to supporting it; Capital for Colleagues is capitalising on this market opportunity

ALTERNATIVE ASSET CLASS

Enlightened investors are increasingly looking for an alternative to traditional private equity model; this is therefore an ideal opportunity for portfolio diversification

IMPACT INVESTMENT

Employee Owned Businesses tend to be managed in a more open and inclusive way, which delivers noticeable social benefits internally and in the communities in which they operate. 

PATIENT CAPITAL

There are currently very few equity funders in the Employee Owned Business sector, giving Capital for Colleagues a market leading advantage

STRONG PIPELINE

There is no shortage of investee companies, and Capital for colleagues has direct access to a wide network of contacts within the EOB sector, including the Employee Ownership Association