Executive Summary
In this report, we share insights on entries, add-ons, exits, holding periods, largest investors, PE portfolio, growth rates and much more. Here is a summary of our key findings:
Entries — PE entries gained momentum in late 2024, but 2025 is off to a slow start. What appeared to be a V-shaped recovery in dealmaking now appears to be slowing down. By sector, Services (30%) and TMT (26%) together account for over half of all new entries, with London (31%) taking the top spot by city.
Exits — After two consecutive years of declines, the UK PE exit market recovered in 2024. But much of that momentum appears to have reversed in Q1 2025. Exits from Consumer and Industrials assets look particularly challenged, and overall UK holding periods are now up to 5.3 years — up from 4.1 years in 2020.
Largest UK HQ’d investors investing in Europe — CVC has emerged as the leading UK HQ’d investor, managing a total estimated EV of £65bn in Europe (including the UK), followed by Cinven (£35.8bn), Hg (£32.6bn), Bridgepoint (£29.5bn), Permira (£28.6bn), 3i (£26.9bn) and Triton (£24.0bn). Collectively, the largest 50 UK HQ’d investors manage an estimated EV of £435bn in Europe, with the top 10 alone managing £299bn (69%).
PE portfolio stats — PE-backed businesses in the UK employ over 2.5 million people — 6.6% of the UK’s working-age population. PE penetration rates are around 9%, with UK PE assets delivering higher growth and margins than their European counterparts.
Growth — Oakley Capital, Vitruvian Partners, Livingbridge, Hg and Cinven have emerged as the firms with the fastest-growing portfolios, while TDR Capital and CVC stand out as the leading job creators.
Chapter 01: Entries
Overall PE Entries
UK PE entry activity made a comeback in 2024, up 39% year over year. While dealmaking didn’t quite reach the highs of 2021, it was the second-best year on record. Investors took advantage of easing credit spreads, attractive valuations and a degree of certainty to return to the market. That said, 2025 is off to a slow start.
PE entries gained momentum in late 2024 but 2025 is off to a slow start. What appeared to be a V-shaped recovery now appears to be stalling. Fresh concerns around tariffs, trade tensions and renewed macro uncertainty are all weighing on the investor sentiment.
Nearly half of all PE entries in the UK above £10m EBITDA in 2024 were led by North American investors — the highest share among all European regions. This trend is partly driven by relatively lower UK valuations compared to the US, making the UK an attractive target market. In addition, the UK is a natural acquisition market for US investors given the presence of sizeable teams, a shared language and strong cultural ties.
Chapter 02: Exits
Overall PE Exits
Exit activity rebounded in 2024 — up 30% year-on-year. After two consecutive years of declines, the UK market recovered, surpassing 2022 levels, though still below the record highs of 2021. The rebound was driven by improved credit conditions and greater macro stability. However, 2025 is off to a slow start, with exit momentum softening again.
UK PE exit recovery stalled in Q1 2025, reversing much of the momentum seen in the second half of last year. The drop highlights renewed caution in the market, with tariffs, trade and macro uncertainty clouding the exit outlook.
