Private equity investors are positive about the UK economy and on track to provide a bumper level of funding this year.
Deal value was £51.8 billion (€57.9 billion) at the end of June, meaning it is rapidly catching the ‘Brexit year’ deal level of £89 billion in 2016.
The level of funding suggests private equity investors are optimistic for the UK economy “despite the continuing narrative suggesting negative economic consequences” due to the impending Brexit, said a report from PitchBook.
PitchBook, which measures deal flows in the private equity industry, found there were 410 UK private equity deals in the six months to the end of June, which compares to 930 for all of last year.
Full figures for the past three-and-a-half-years are:
| UK PRIVATE EQUITY | 2014 | 2015 | 2016 | 2017* |
| Funding £bn | 85 | 108 | 89 | 52 |
| Deal count | 916 | 1024 | 930 | 410 |
*June 30
PitchBook described the trend this year as signifying “positive change” in terms of deal activity since the vote to exit the EU.
The UK saw 36% of all deals completed in Europe until June 30, well above the long-term average of 28%.
“Without a change in that current trend, UK companies are on pace to receive the greatest percentage of PE [private equity] deal flow in our dataset,” PitchBook’s ‘2017 European private equity report’ shows.
Europe-wide, the number of deals was trending downwards in the first half, though deal size was increasing. At the end of June there had been an estimated €201.8 billion invested over 1,209 deals. PitchBook said deal value remained strong.
©2017 funds europe
