PE deal activity in the UK climbed to £24.1 billion (about $32.4 billion) in Q2 2025, marking a quarter-on-quarter increase, although investment still lagged behind the same period last year.
According to PitchBook’s Q2 2025 UK Market Snapshot, deal volume also picked up in the second quarter, with 396 deals completed compared to 373 in the first three months of this year. However, this volume remains below the 452 and 433 deals recorded in the first two quarters of 2024.
The rebound reflects cautious optimism in the market, despite ongoing macroeconomic uncertainty.
The quarter’s largest deal was the £2.4 billion buyout of workflow software provider OSTTRA Group by KKR. This was followed by Apax Partners’ £1.5 billion acquisition of Finastra‘s payments business and Investindustrial‘s £950 million buyout of HBI Health & Beauty Innovations.
These top three deals greatly contributed to the dominance of traditional buyouts, which regained share from growth and add-on investments in terms of total deal value.
The UK also continued to attract international interest, particularly from US investors, who remain the most active foreign participants in Europe’s PE landscape. Notably, 31.1% of UK PE deals in H1 2025 involved American investors—a share that has steadily grown in recent years.
Exit activity also strengthened in Q2, with total value rising to £7.3 billion. Acquisitions have become a more common exit route compared to buyouts, continuing a trend seen over recent quarters. Sector-wise, finance and B2C companies captured the largest shares of exit value, reflecting investor interest in consumer-facing and financial services businesses.
UK PE fundraising remained resilient in the first half of 2025. Although below 2024’s record highs, PE funds raised £22.3 billion in H1, with most vehicles sizing at £1 billion or more. However, the market had no mega-fund closes, defined as funds over £5 billion. The standout close for Q2 was Investindustrial VIII, which wrapped at £4 billion.
Despite the fundraising activity, PE dry powder in the UK has continued its downward trend, falling to £125 billion by the end of 2024. This may signal a more disciplined deployment environment and a shift in investor preference toward more targeted strategies.
Featured image by Chunyip Wong/Getty Images
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