UK Private Equity Market

UK Private Equity Market Overview:

The UK private equity market size reached USD 66.37 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 116.98 Billion by 2033, exhibiting a growth rate (CAGR) of 6.50% during 2025-2033. The market is witnessing significant growth mainly due to significant technology investments, along with increasing ESG-focused strategies. Investors are targeting sectors such as fintech, healthcare, and green tech, capitalizing on innovation and sustainability trends, which, in turn, is contributing to the market growth across the UK.

UK Private Equity Market Trends:

Rising Focus on ESG

Private equity firms in the UK are placing a stronger emphasis on Environmental, Social and Governance (ESG) factors, reflecting the growing investor demand for responsible and sustainable investments. This trend is driven by the rising need to manage environmental risks, meet regulatory requirements and address societal expectations. Firms are not only incorporating ESG criteria into due diligence processes but are also actively engaging with portfolio companies to improve sustainability practices. Climate-related goals such as reducing carbon emissions and promoting green energy initiatives are becoming key components of investment strategies. The focus on ESG is also enhancing long-term value creation as businesses that demonstrate strong sustainability credentials often attract higher valuations and enjoy improved resilience in volatile markets. For instance, in November 2023, Barclays invested £3 million in Sustainable Ventures to support its UK expansion. Sustainable Ventures plans to use the funding to increase its presence in the UK. This investment will help create jobs, drive economic growth and contribute to the UK's 2038 net zero target.

Increased Focus on Tech-Driven Investments

Private equity firms are increasingly focused on technology investments recognizing the transformative potential across industries. Sectors such as artificial intelligence (AI), fintech, and digital transformation are particularly attractive mainly due to their rapid innovation and growth potential. Companies that leverage data analytics, automation and digital platforms are seeing a surge in private equity interest as they promise to drive operational efficiency and create new business models. The shift toward tech-driven investments is not only boosting returns but also positioning firms to capitalize on emerging trends like Industry 4.0 and the digital economy. For instance, in March 2024, ICG, the global alternative asset manager, was chosen by the British Business Bank to receive an investment from the Long-term Investment for Technology and Science (LIFTS) initiative. This initiative aims to attract institutional investment into the UK’s Science and Technology companies. The British Business Bank has committed £100 million as an anchor investor into ICG’s Life Sciences strategy, with an additional £100 million investment from Phoenix Group.

UK Private Equity Market News:

• In March 2024, Inflexion successfully raised £1.75 billion for its Inflexion Partnership Capital Fund III, marking it as the largest dedicated minority fund in Europe. The fund will focus on minority equity investments in high-growth businesses within the UK and Europe, with a particular emphasis on Business Services, Technology, Healthcare, Industrials, Consumer, and Financial Services. The fund has garnered support from a diverse group of investors and is committed to promoting environmental and social characteristics.
• In June 2024, CVC, a top private equity firm, announced the acquisition of M Group Services, the UK largest essential infrastructure services provider, from PAI Partners. The transaction is set to be finalized in Q3 2024. M Group Services has experienced significant growth under PAI partnership, with doubled revenues and an expanded service offering. The company aims to continue its growth trajectory with CVC's support.

UK Private Equity Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on fund type and sector.

Fund Type Insights:

• Buyout
• Venture Capital (VCs)
• Real Estate
• Infrastructure
• Others
   

The report has provided a detailed breakup and analysis of the market based on the fund type. This includes buyout, venture capital (VCs), real estate, infrastructure, and others.

Sector Insights:

• Technology (Software)
• Healthcare
• Real Estate and Services
• Financial Services
• Industrial
• Consumer and Retail
• Energy and Power
• Media and Entertainment
• Telecom
• Others 
   

A detailed breakup and analysis of the market based on the sector have also been provided in the report. This includes technology (software), healthcare, real estate and services, financial services, industrial, consumer and retail, energy and power, media and entertainment, telecom, and others.

Regional Insights:

• London
• South East
• North West
• East of England
• South West
• Scotland
• West Midlands
• Yorkshire and The Humber
• East Midlands
• Others
   

The report has also provided a comprehensive analysis of all the major regional markets, which include London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and Others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

UK Private Equity Market Report Coverage:

Key Questions Answered in This Report:

• How has the UK private equity market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the UK private equity market?
• What is the breakup of the UK private equity market on the basis of fund type?
• What is the breakup of the UK private equity market on the basis of sector?
• What are the various stages in the value chain of the UK private equity market? 
• What are the key driving factors and challenges in the UK private equity?
• What is the structure of the UK private equity market and who are the key players?
• What is the degree of competition in the UK private equity market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the UK private equity market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the UK private equity market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the UK private equity industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.