A third of VCs will not invest with companies with a DB pension deficit

A third of mid-market venture capitalists will not invest in a company with a pensions deficit from a defined benefit scheme, according to a survey conducted by Grant Thornton Corporate Finance. Whilst every venture capitalist questioned said they had completed at least one deal involving a company with a pensions liability over the past twelve months, over 80% of respondents said this was not the case in the majority of their new investments.

Looking at the results in greater detail, venture capitalists’ exposure to pension liabilities appear to be relatively under control.