Private equity in the UK - statistics & facts

Private equity (PE) refers to capital invested into companies not listed on the stock exchange (not publicly traded). The private equity market consists of private investors and investment funds that invest directly into private businesses with high potential growth, in exchange for future returns. The United Kingdom (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 PE investment flows. In the global PE landscape, however, North America, and the United States in particular, remains by far the largest market.

PE investment flows: sources and targets

London is among the leading financial hubs in Europe and worldwide, attracting and managing huge amounts of the global capital flows. This reflects in the UK's private equity market: London attracted nearly half of all PE investments in the UK in 2020. PE investments 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 36 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 10 leading private equity firms in Europe are located in London. Also, many of these private equity investment funds and firms have assets under management worth billions of euros.
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, Jun 30, 2022

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
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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

Largest equity capital deals in the United Kingdom (UK) in 2021 (in million GBP)

Corporate Financing

Largest equity capital deals in the UK 2021

Leading private equity (PE) companies in the United Kingdom (UK) in terms of fund-raising capacity between 2017 and 2022 (in million U.S. dollars)

M&A & Private Equity

Biggest private equity firms in the UK 2017-2022, by fund raising capacity

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