Midlands private equity deals hold steady in 2025 despite market uncertainty
Total private equity investment activity in the Midlands held steady in 2025, according to newly published research.
The data says 188 transactions were completed among Midlands firms last year, a marginal rise of two per cent year on year.
The findings are published in the latest annual UK Private Equity Review by big four financial services firm KPMG UK.
According to the report, confidence in the Midlands and wider UK market was affected by geopolitical tensions, tariff uncertainty and ongoing economic challenges throughout 2025.
Deal activity in the region was stronger in the second half of 2025, with 99 deals completed after June, compared with 89 in the first half, signalling positive market momentum.
Private equity exits also increased year on year with 23 in 2024 and 27 in 2025.Activity was higher in the first half of last year, with a total of 15 exits completed, compared with 12 in the second half.
Bolt-ons remained the most common deal type year on year, KPMG's research says, with 118 completed as investors looked to build scale in their existing platforms.
This was followed by buyouts, of which 38 were completed - 18 more than the previous year.
The Midlands' private equity market accounted for more than ten per cent of the total activity across the UK.
Stuart Sewell, KPMG's head of mergers and acquisitions in the Midlands, said: "Although marginal, the Midlands was one of only two regions where private equity deal volumes rose last year, underlining once again the resilience and vibrancy of our regional mergers and acquisitions market against a challenging backdrop.
"Notably, buyout activity surged, highlighting continued investor appetite for well-run businesses with a clear strategy for growth.
"A pick-up in deal volumes in the second half of the year is a positive sign and an abundance of dry powder and credit for transactions should see market momentum accelerate further as we move through the year.
"The climate is right for Midlands firms to press ahead with their expansion plans."
