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AI leads UK venture deal value rebound, but fundraising momentum weakens
Private capital activity in the UK remained a tale of two markets in Q3 2025. PE dealmaking surged to near-record highs, hitting £54.4 billion, powered by major buyouts and growing US investor participation. Exit value also rebounded strongly, led by activity in finance and healthcare. Meanwhile, VC showed strength in deal value, climbing to £3 billion, with AI in the spotlight again thanks to Nscale’s £1.1 billion round. However, fundraising across both asset classes softened, suggesting LP caution and smaller fund strategies are taking hold. Macroeconomic uncertainty, delayed rate cuts, and looming tax reforms continue to shape investor sentiment. With Manchester overtaking Oxford in combined PE and VC deal value, regional dynamics are shifting. All eyes now turn to the upcoming UK Budget, as stakeholders assess its impact on returns, deal flow, and long-term market competitiveness.
Table of contents
| Market overview | 2 |
| Commentary | 3 |
| City comparison | 4 |
| Private markets | 5 |
| VC deal activity | 7 |
| VC exit activity | 9 |
| VC fundraising activity | 10 |
| PE deal activity | 11 |
| PE exit activity | 13 |
| PE fundraising activity | 14 |
| Corporate acquisition activity | 15 |
| Public equity markets | 16 |
