Mid-market private equity investment activity in the UK declined by 11% in the first half of 2024, as challenging macroeconomic conditions persisted, according to KPMG UK’s latest Mid-Market Private Equity analysis.
The firm’s most recent M&A study revealed that 321 mid-market transactions were completed during the first six months of the year, representing a drop of 11% when compared to the 360 transactions completed during the same period in 2023. However, when compared with pre-pandemic M&A activity (H1 2019), 2024’s figure reflects an increase in activity of 25%, suggesting the market has begun to normalise.
It was a similar picture for the UK private equity market overall, with 656 deals completed during H1 2024, reflecting a 20% decline when compared to 822 transactions in H1 2023.
UK companies continued to remain attractive to international buyers, with inbound deals accounting for 42% of all M&A activity during the first half of 2024 – and almost half of those buyers were US-based.