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HOW IS THE PRIVATE EQUITY MARKET PERFORMING?

Here are six key stats that highlight the positive recent trajectory of the PE market:

Global private equity dealmaking rebounded significantly in 2024 following two less productive years, rising by 14% to $2tn. This meant it was the third most active year on record for the asset class by value (source: McKinsey). In Q1 2025, global PE deal value surpassed first-quarter activity for each of the previous two years (source: Pitchbook). Add-on acquisitions accounted for 40% of private equity M&A deal value in 2024, the second highest ratio within the past decade.

In the UK, total deal value in the PE market is projected to reach $116bn in 2025, with an average transaction figure of $86m (source: Statista) . This indicates around 1,340 UK PE deals are likely to occur.

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A total of 8,069 PE deals have taken place in the UK in the last five years – over 17% of all M&A transactions.

02

05

Over the last 10 years, the UK has recorded a 28.7% share of total deal value in the European private equity market (source: Pitchbook).

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Dave Gardner, Corporate Finance Managing Director at KBS, explains:

PE AUM (£BN)

“There is still a lot of dry powder around following the Covid pandemic. Ultimately, investors want to make their money sweat and private equity is one of the avenues they will explore. “It’s not easy to get investment but the majority of people we speak to are over-subscribed when raising funds. The outlook in recent months has picked up – the trajectory is upward, investors are much more confident in the market and are willing to increase their activity and spend what they have available.”

£450 £400 £350 £300 £250 £200 £150 £100 £50 £0

£148

£105

£125

£129 £127

£104

£87 £82

£58 £61 £57

£148 £125

£104 £129 £127 £105

£58 £61 £57 £87 £82

2021

2013

2017

2015

2014

2016

2019

2018

2022

2020

2023*

DRY POWDER

REMAINING VALUE

Source: Pitchbook

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