Private Equity Dealmaking Rebounds in UK Market, Driven by Mega-Deals and US Investment
London, September 5, 2025 - Private equity (PE) activity in the UK has shown signs of recovery after a slow start to the year, with a surge in larger transactions boosting deal values and signaling renewed investor confidence. The uptick is being fueled by increased interest from US firms seeking attractive valuations amidst intense 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 the average deal value. According to recent analysis, the UK remains a key destination for PE firms, traditionally “where PE firms operate because it represents the largest volume of companies.” This shift suggests a strategic move towards long-term growth investments rather than prioritizing the sheer number of deals completed.The renewed appetite for large buyouts comes as domestic investors express caution regarding UK market 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 to private markets and concentration of leading firms. US investor participation in UK deal activity has climbed steadily, rising from 20.5 per cent of total deal value to 31.3 per cent in 2025.