Recent insight from KPMG reveals that, although there was initial optimism for a record-breaking year in 2025, the UK private equity market ultimately encountered uncertainty. This led to a decrease in large-cap deal volumes, while activity in the mid-market remained stable.
Business services, especially accounting and legal assets, saw strong demand, with investors favouring bolt-on acquisitions and primary buyouts to boost asset value and acquire talent. The mid-market remained resilient as new funds entered and opportunities were sought nationwide. Looking ahead, KPMG is cautiously optimistic about a market rebound in 2026, spurred by capital deployment, exits, and improved confidence as the political and economic climate stabilises.
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