NatWest ‘Critical Middle’ report references need for IP-backed financing

10 Dec 2024

Mid-market corporates The critical middle report
Mid-market corporates The critical middle report
Mid-market corporates The critical middle report
Mid-market corporates The critical middle report

NatWest’s report, ‘The Critical Middle’, published at the start of December, highlights the fact that the UK’s 13,400 Mid-Market Companies (MMCs) represent just 0.5% of UK companies, yet account for 26% of employment and 30% of UK economic Gross Value Added (GVA).


The report – which defines MMCs as companies turning over between £25m and £500m, said that MMCs have grown 20% faster than the rest of the economy, with productivity at twice the rate of SMEs and Large Corporates.


NatWest says that 1% growth in this segment could add £35bn gross value to the UK economy and £115bn in business turnover by 2030.


The report makes seven recommendations to address key challenges faced by the UK’s MMCs. One of these is: “Ensure MMCs receive appropriate support by tailoring services for the segment.”


The report makes it clear that this tailored support should cover not just government agencies, but also banks, private equity firms, and the broader private sector.


It states: “Relationship managers can help MMCs access the finance they need and navigate the support available from Government, ALBs and industry bodies. To do this effectively, RMs need a deep understanding of public and private sector financing options available for MMCs, including IP financing, venture debt, venture capital and private equity investments.”


The report was jointly issued by NatWest and international management consulting firm Oliver Wyman, and supported by the Business Secretary, Jonathan Reynolds MP, and is based on consultation with more than 1,000 UK MMCs.


Paul Thwaite, CEO, NatWest Group said: “Mid-market businesses are a significant growth driver for our economy, playing a crucial role in supporting the UK’s regions as a substantial employer, whilst driving productivity improvements. However, they have the potential to do even more. Through today’s report we want to encourage a step change in support for the critical middle. The first step on that journey is to convene a MMC Council - creating a cohesive identity to collectively advocate and influence for growth enabling policies and support.”


In January, NatWest became the first UK mainstream bank to launch a loan proposition which actually values a firm’s IP and then uses it as collateral for lending; previous IP-supported lending products either used the IP value as additional ‘comfort’ in the lending decision, or were sale and lease-back arrangements.


Other recommendations include giving MMCs a voice – and to provide that voice, NatWest, with the support of the Department of Business and Trade, also announced it is creating a new UK Mid-Market Council, with members representing the primary sectors from across the business sphere, commencing in 2025.


NatWest is also launching a new Mid-Market Growth Tracker, in collaboration with S&P Global. Thought to be the first of its kind, the tracker will use the industry standard Purchasing Managers Index (PMI) to provide an ongoing view of mid-market sentiment and productivity across the UK, providing regular data on progress.


Link to download of NatWest report:

https://www.natwestgroup.com/content/dam/natwestgroup_com/natwestgroup/pdf/Mid-market-corporates-The-critical-middle-report.pdf

NatWest’s report, ‘The Critical Middle’, published at the start of December, highlights the fact that the UK’s 13,400 Mid-Market Companies (MMCs) represent just 0.5% of UK companies, yet account for 26% of employment and 30% of UK economic Gross Value Added (GVA).


The report – which defines MMCs as companies turning over between £25m and £500m, said that MMCs have grown 20% faster than the rest of the economy, with productivity at twice the rate of SMEs and Large Corporates.


NatWest says that 1% growth in this segment could add £35bn gross value to the UK economy and £115bn in business turnover by 2030.


The report makes seven recommendations to address key challenges faced by the UK’s MMCs. One of these is: “Ensure MMCs receive appropriate support by tailoring services for the segment.”


The report makes it clear that this tailored support should cover not just government agencies, but also banks, private equity firms, and the broader private sector.


It states: “Relationship managers can help MMCs access the finance they need and navigate the support available from Government, ALBs and industry bodies. To do this effectively, RMs need a deep understanding of public and private sector financing options available for MMCs, including IP financing, venture debt, venture capital and private equity investments.”


The report was jointly issued by NatWest and international management consulting firm Oliver Wyman, and supported by the Business Secretary, Jonathan Reynolds MP, and is based on consultation with more than 1,000 UK MMCs.


Paul Thwaite, CEO, NatWest Group said: “Mid-market businesses are a significant growth driver for our economy, playing a crucial role in supporting the UK’s regions as a substantial employer, whilst driving productivity improvements. However, they have the potential to do even more. Through today’s report we want to encourage a step change in support for the critical middle. The first step on that journey is to convene a MMC Council - creating a cohesive identity to collectively advocate and influence for growth enabling policies and support.”


In January, NatWest became the first UK mainstream bank to launch a loan proposition which actually values a firm’s IP and then uses it as collateral for lending; previous IP-supported lending products either used the IP value as additional ‘comfort’ in the lending decision, or were sale and lease-back arrangements.


Other recommendations include giving MMCs a voice – and to provide that voice, NatWest, with the support of the Department of Business and Trade, also announced it is creating a new UK Mid-Market Council, with members representing the primary sectors from across the business sphere, commencing in 2025.


NatWest is also launching a new Mid-Market Growth Tracker, in collaboration with S&P Global. Thought to be the first of its kind, the tracker will use the industry standard Purchasing Managers Index (PMI) to provide an ongoing view of mid-market sentiment and productivity across the UK, providing regular data on progress.


Link to download of NatWest report:

https://www.natwestgroup.com/content/dam/natwestgroup_com/natwestgroup/pdf/Mid-market-corporates-The-critical-middle-report.pdf

NatWest’s report, ‘The Critical Middle’, published at the start of December, highlights the fact that the UK’s 13,400 Mid-Market Companies (MMCs) represent just 0.5% of UK companies, yet account for 26% of employment and 30% of UK economic Gross Value Added (GVA).


The report – which defines MMCs as companies turning over between £25m and £500m, said that MMCs have grown 20% faster than the rest of the economy, with productivity at twice the rate of SMEs and Large Corporates.


NatWest says that 1% growth in this segment could add £35bn gross value to the UK economy and £115bn in business turnover by 2030.


The report makes seven recommendations to address key challenges faced by the UK’s MMCs. One of these is: “Ensure MMCs receive appropriate support by tailoring services for the segment.”


The report makes it clear that this tailored support should cover not just government agencies, but also banks, private equity firms, and the broader private sector.


It states: “Relationship managers can help MMCs access the finance they need and navigate the support available from Government, ALBs and industry bodies. To do this effectively, RMs need a deep understanding of public and private sector financing options available for MMCs, including IP financing, venture debt, venture capital and private equity investments.”


The report was jointly issued by NatWest and international management consulting firm Oliver Wyman, and supported by the Business Secretary, Jonathan Reynolds MP, and is based on consultation with more than 1,000 UK MMCs.


Paul Thwaite, CEO, NatWest Group said: “Mid-market businesses are a significant growth driver for our economy, playing a crucial role in supporting the UK’s regions as a substantial employer, whilst driving productivity improvements. However, they have the potential to do even more. Through today’s report we want to encourage a step change in support for the critical middle. The first step on that journey is to convene a MMC Council - creating a cohesive identity to collectively advocate and influence for growth enabling policies and support.”


In January, NatWest became the first UK mainstream bank to launch a loan proposition which actually values a firm’s IP and then uses it as collateral for lending; previous IP-supported lending products either used the IP value as additional ‘comfort’ in the lending decision, or were sale and lease-back arrangements.


Other recommendations include giving MMCs a voice – and to provide that voice, NatWest, with the support of the Department of Business and Trade, also announced it is creating a new UK Mid-Market Council, with members representing the primary sectors from across the business sphere, commencing in 2025.


NatWest is also launching a new Mid-Market Growth Tracker, in collaboration with S&P Global. Thought to be the first of its kind, the tracker will use the industry standard Purchasing Managers Index (PMI) to provide an ongoing view of mid-market sentiment and productivity across the UK, providing regular data on progress.


Link to download of NatWest report:

https://www.natwestgroup.com/content/dam/natwestgroup_com/natwestgroup/pdf/Mid-market-corporates-The-critical-middle-report.pdf

NatWest’s report, ‘The Critical Middle’, published at the start of December, highlights the fact that the UK’s 13,400 Mid-Market Companies (MMCs) represent just 0.5% of UK companies, yet account for 26% of employment and 30% of UK economic Gross Value Added (GVA).


The report – which defines MMCs as companies turning over between £25m and £500m, said that MMCs have grown 20% faster than the rest of the economy, with productivity at twice the rate of SMEs and Large Corporates.


NatWest says that 1% growth in this segment could add £35bn gross value to the UK economy and £115bn in business turnover by 2030.


The report makes seven recommendations to address key challenges faced by the UK’s MMCs. One of these is: “Ensure MMCs receive appropriate support by tailoring services for the segment.”


The report makes it clear that this tailored support should cover not just government agencies, but also banks, private equity firms, and the broader private sector.


It states: “Relationship managers can help MMCs access the finance they need and navigate the support available from Government, ALBs and industry bodies. To do this effectively, RMs need a deep understanding of public and private sector financing options available for MMCs, including IP financing, venture debt, venture capital and private equity investments.”


The report was jointly issued by NatWest and international management consulting firm Oliver Wyman, and supported by the Business Secretary, Jonathan Reynolds MP, and is based on consultation with more than 1,000 UK MMCs.


Paul Thwaite, CEO, NatWest Group said: “Mid-market businesses are a significant growth driver for our economy, playing a crucial role in supporting the UK’s regions as a substantial employer, whilst driving productivity improvements. However, they have the potential to do even more. Through today’s report we want to encourage a step change in support for the critical middle. The first step on that journey is to convene a MMC Council - creating a cohesive identity to collectively advocate and influence for growth enabling policies and support.”


In January, NatWest became the first UK mainstream bank to launch a loan proposition which actually values a firm’s IP and then uses it as collateral for lending; previous IP-supported lending products either used the IP value as additional ‘comfort’ in the lending decision, or were sale and lease-back arrangements.


Other recommendations include giving MMCs a voice – and to provide that voice, NatWest, with the support of the Department of Business and Trade, also announced it is creating a new UK Mid-Market Council, with members representing the primary sectors from across the business sphere, commencing in 2025.


NatWest is also launching a new Mid-Market Growth Tracker, in collaboration with S&P Global. Thought to be the first of its kind, the tracker will use the industry standard Purchasing Managers Index (PMI) to provide an ongoing view of mid-market sentiment and productivity across the UK, providing regular data on progress.


Link to download of NatWest report:

https://www.natwestgroup.com/content/dam/natwestgroup_com/natwestgroup/pdf/Mid-market-corporates-The-critical-middle-report.pdf

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Copyright © Inngot Limited 2019-2024. All rights reserved.

Inngot's online platform identifies all your intangible assets and demonstrates their value to lenders, investors, acquirers, licensees and stakeholders

Accreditations

Copyright © Inngot Limited 2019-2024. All rights reserved.

Inngot's online platform identifies all your intangible assets and demonstrates their value to lenders, investors, acquirers, licensees and stakeholders

Accreditations

Copyright © Inngot Limited 2019-2024. All rights reserved.