Private equity investment in the UK has risen to its highest level in five years, as investors gained a renewed sense of confidence and vendors brought their assets to market – according to new analysis from KPMG.
KPMG’s latest study of UK transactions involving mid-market private equity investors showed a boost of activity in H1 2021, as 377 deals were completed with a combined value of GBP20.7 billion – levels which haven’t been seen since H1 2017. This is a significant increase when compared to the same period in 2020, which saw 260 deals with a combined value of GBP14.9 billion.
The picture for the UK’s private equity market overall was similar, with deal value and volumes rising to levels not seen for five years. Between January and June 2021, 785 deals were completed with a combined value of GBP73.7bn, representing a 61 per cent increase in volumes and a 48 per cent increase in value when compared to H1 2020.
Jonathan Boyers, Head of KPMG’s UK Corporate Finance practice, says: “Many predicted 2021 as the year for greater stability and increased market confidence, and the burst of transaction activity we’ve seen in H1 is a strong indicator that the bounce-back is well underway. The momentum from Q4 2020 picked up pace in Q1 2021 as pent-up demand started being released. Deals that had been put on hold in spring and summer 2020 were revived as private equity investors returned to the market with renewed appetites and plenty of cash to deploy.
Read more/Source: Private Equity Wire
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