Solving the SME conundrum, part three: Rethinking trading for SMEs
Policy makers perceive it is a lack of research that limits investment in SMEs, but for asset managers it is the lack of secondary market liquidity.
Any successful investment requires the ability to exit as well as instigate the strategy and the increased regulatory focus on managing liquidity stress following the Woodford scandal1 makes it more challenging for asset managers to invest in SMEs.
In this four-part series, Solving the SME Conundrum, we look at the challenges facing SMEs and their access to capital markets. In Part One we looked at the importance of IPOs in the SME eco-structure. In Part Two, we explored the potential outcome of rebundling research and its subsequent impact on SMEs. In this third paper we focus on the need to improve secondary market liquidity as a means of boosting investment in SMEs.
The report has been compiled by Vicky Sanders, Global Head of Investment Analytics, in partnership with Rebecca Healey and Charlotte Decuyper, Redlap Consulting