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UK PE dealmaking rebounded in Q3 2025 to £54.4 billion (about $72.6 billion), as falling interest rates and rising economic confidence revived large-cap transactions.
According to PitchBook’s Q3 2025 UK Market Snapshot, a surge of major buyouts helped quarterly deal value climb to its highest level since Q1 2022, despite total deal count dropping to 377 from 443 in Q2—the lowest since 2020.
In Q3, the UK and Ireland lifted their share of deal value in Europe to the highest level since 2017, accounting for 40% of capital invested in Europe. The UK continues to cement its role as the continent’s hub for private markets, with eight of the top 10 deals in Q3 originating in the UK.
Significant transactions in the quarter included Paris-based PAI Partners raising £3.1 billion to roll its 50% stake in UK-based ice cream maker Froneri into a single-asset continuation vehicle in July, in a deal worth over £6 billion. In the same month, Apollo-backed Athora acquired Pension Insurance Corporation for £5.7 billion.
In August, KKR completed a £4.8-billion takeover of UK-based precision instruments manufacturer Spectris, after winning a bidding war with Advent International.
Add-on deals expanded their share of total value as sponsors prioritized bolt-on strategies to strengthen existing portfolio companies amid a still-selective deal environment. This suggests that PE investors are balancing opportunistic megadeals with disciplined platform expansion.
US investor participation continued to rise, with American investors involved in 31.7% of all UK deals. Nearly half of the UK’s total deal value came from transactions with at least one US investor.
Exit value grew to £25.3 billion in Q3 across 79 exits, up from 63 and 66 in Q1 and Q2 2025, respectively. This represents a return to growth in value and count after exits slowed earlier in the year.
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