Private equity in the UK - statistics & facts

With nearly 90 billions U.S. dollars worth of financial services trade surplus, the United Kingdom is one of the most important financials hubs globally. This makes the UK also one of the largest and most active private equity - which broadly refers to capital invested into companies not listed on the stock exchange (not publicly traded) - industries worlwide. The UK has the second largest private equity market relative to its gross domestic product (GDP) in Europe and it is a sought-after destination for international private equity investment flows. In the global private equity landscape, however, North America, and the United States in particular, remains by far the largest market.

PE investment flows: sources and targets

The leading position of the UK as one of the main hubs for financial services worldwide is thanks to the city London: The British capital attracts and manages huge amounts of the global capital flows. This reflects in the country's private equity market: London attracted nearly half of all private equity investments in the UK in 2022. Private equity investment inflows in the UK come from all over the world, with capital from firms located in North America being the main source of PE funding and accounting for approximately 30 percent of the total. When looking at the target companies, the ICT (information and communication technology) sector appears to be the most popular for PE investments in the UK. In fact, the ICT sector is one of the most dynamic industries in terms of innovation and one with the highest growth potential.

Leading PE firms

While the U.S. represents by far the largest market for private equity investments worldwide, and it is also home to the biggest PE firms worldwide, the UK, and particularly the city of London, has become the European hub for PE. According to a ranking based on PE fundraising capacity in the last five years, five out of the ten leading private equity firms in Europe are located in London. Apart from the importance of large funds who manage assets and investments, private equity as a broader impact on economies: It is estimated that private equity-backed businesses generated 286 billion British pounds in GDP in 2023 in the UK, accounting for six percent of the country's total.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Statista Research Department, Mar 21, 2024

Key insights

Private equity market as share of GDP
1.79%
Leading destination for PE investments
London
Major challenge for PE industry in the future
Increasing regulation
Get more insights

Editor’s Picks Current statistics on this topic

Market size of the private equity (PE) industry in the United Kingdom (UK) from 2012 to 2022 with a forecast for 2023 (in million GBP)

M&A & Private Equity

Private equity market size in the UK 2012-2022

Leading private equity (PE) companies in the United Kingdom (UK) in terms of fund-raising capacity between 2018 and 2023 (in million U.S. dollars)

M&A & Private Equity

Biggest private equity firms in the UK 2018-2023, by fund raising capacity

Value of private equity (PE) deals worldwide from 2019 to 2023, by target country (in billion U.S. dollars)

M&A & Private Equity

Value of private equity deals worldwide 2019-2023, by target country

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