Private Equity M&A Report 2026

This is the eighth year we’ve published a report on UK M&A and private equity deal markets, in partnership with Pinsent Masons and Wiispa.

Overview

There are early indications that 2026 will be a strong year for UK private equity transactions after a stop-start previous 12 months.

While some major private equity transactions completed – such as deals for Hargreaves Lansdown and Grant Thornton – the overall picture in 2025 was one of fewer deals being done.

Buyers were very selective in committing funds, focusing on high-quality assets in industries promising opportunities for good growth, consolidation, and scalability, as well as where business models were seen as ripe for streamlining – including through use of technology. In that context, businesses active in the technology sector, as well as those involved in healthcare, professional services, and energy transition, continued to be popular targets.

Deal-making in an uncertain environment

There was a preponderance of caution in the market, reflecting underlying geopolitical and economic uncertainty. We saw a tendency for investors to deploy capital in assets and sectors they were already familiar with, whether via existing portfolio companies or new platform deals in sectors where they have previously generated strong returns, where sellers were able to present a very compelling offering.

Towards the end of 2025, we began to see an uptick in activity – and this has continued into early 2026. We have already seen an increase in the number of investment memoranda circulating for new platform processes, with a wider acknowledgement of the quality of the assets being marketed, which we consider a good sign of things to come, as well as a rise in management buy-in deals being mooted. Traditionally, these are good bellwethers for subsequent deal-making.

The continuing volatile geopolitical situation is one potential dampener on deal-making, with war in the Middle East the latest major development in a fractious world. However, as we have seen through the pandemic, energy crisis and war in Ukraine, buyers and sellers have proved to be resilient and adaptable when the situation demands and we expect this to be the case as the situation evolves.

For a deeper dive into these trends and their implications, read the full Private Equity M&A Trends Report 2026.

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