Private Equity Dealmaking Rebounds in UK Market, Driven by Mega-Deals and US Investment
London, September 5, 2025 โฃ- Private equity (PE) โคactivity in the UK has shown signs of โrecoveryโฃ after a slow start to the year, โwith a surge โin larger transactionsโ boosting deal values and signaling renewed investor confidence. โThe uptick is beingโ fueled by increased interest fromโฃ US firms seeking attractive valuations amidst โคintense competition in their domestic market.
While overall deal volume remained moderate, the market witnessed a bounce back in “mega deals” – transactions valued at important sums – lifting โขthe average โdeal โฃvalue. According to recent analysis, the UK remains a key destination for PE โfirms, traditionally “where PE firms operate because it represents the largest volume of companies.” This shift suggests โขa strategic move towards long-termโค growth investments rather than prioritizing the sheer number of deals completed.The renewed appetite for large buyouts comes as โขdomestic investors express caution regarding UK marketโ conditions. However, US firms project a bullish outlook, increasingly looking to the UK as a market offering growth opportunities and relative value due to its openness toโ private markets and concentrationโฃ of leading โfirms. US investor participation in UK deal activity has climbed steadily, rising from 20.5 per cent of total deal value to 31.3 per centโค in 2025.