Private capital’s place in the growth conversation

There is no denying that the private capital industry is operating in a moment of significant change, from tackling tough fundraising conditions to a sceptical public debate about its role in the economy. Even so, it continues to be viewed as a potential partner in addressing some of the UK’s most pressing economic challenges.

That tension was palpable walking into last week’s UK Private Capital Investment Policy Forum. But the mood felt notably constructive, as the political discourse evolves from whether private capital deserves a seat at the table, to what it can practically deliver once it is there. 

What stood out most was how little time was spent on broad asset class advocacy. Far from being on the defensive, trying to justify its existence or re-litigate the role of private markets in the economy, the sector now appears to be positioning itself in more practical and confident terms, and crucially, more closely aligned with the Government’s growth agenda.

For corporate affairs teams at private capital firms, that creates a clear opportunity, but also a different set of expectations.

This focus on growth has certainly created a more favourable political backdrop than the industry has seen for some time. Policymakers appear more willing to see private capital as a partner in funding innovation, scaling businesses and strengthening the UK’s industrial base.

However, this does not necessarily mean generic messaging will land. The familiar language of long-term ownership, patient capital and value creation needs to be made much more tangible. Firms must connect what is happening inside portfolio companies to outcomes that matter beyond the investment community: new jobs, better skills, technology adoption, stronger management teams, regional expansion and improved competitiveness.

In communications terms, that means moving beyond returns-led narratives. The strongest stories will be those that show how private capital is helping businesses become more productive, resilient and globally competitive, and why that matters to the wider economy.

The Forum also highlighted how quickly the scope of the policy agenda around private capital is broadening. Defence was perhaps the clearest example where the conversation has moved on from its “investability” to how it can support national sovereignty across critical capabilities in areas such as dual-use technologies, cyber security, aerospace, advanced manufacturing and resilient supply chains.

Unsurprisingly, there was strong focus on how public and private capital can work together to support growth businesses, particularly as policymakers look to mobilise larger pools of domestic capital into productive assets. Regional investment continues to be a major priority, although the framing has matured from “levelling up” as a slogan to tangible outcomes.

There is no shortage of private capital already being channelled towards that goal. The imperative is now to proactively map these investment stories against national priorities consistently enough to demonstrate how it supports productivity, innovation, competitiveness, skills and regional growth for the long term.

Firms that can position themselves as critical partners to government, not simply as market participants, will have a stronger platform with policymakers, media and institutional stakeholders alike.

However, this increasingly constructive tone should not be mistaken for a blank cheque. Greater policy relevance will inevitably carry greater scrutiny.

Alongside the opportunity, there were clear expectations around governance, transparency, responsible investment and demonstrable impact. Regulatory reform may be moving from theory to implementation, but policymakers still expect firms to show that capital is being deployed responsibly and in line with broader economic objectives.

The sustainability discussion reflected this too. The green transition is increasingly being framed in more pragmatic, economically grounded terms around competitiveness, energy security, infrastructure delivery and industrial opportunity, rather than ESG frameworks alone.

Amid all this, the key takeaway for corporate affairs teams is that credibility will matter as much as ambition. The strongest messaging will be specific and evidence-based, presenting a roadmap of where capital is going, what it is changing, who benefits, and why it matters.