The number of private equity transactions completed in the Midlands increased marginally in 2024, while the total investment figure fell, according to the latest UK Private Equity Review from KPMG UK.
The comprehensive annual study into private equity deal activity found that investment in the region declined by 27.4% in 2024, to a total of £13.3 billion. The findings come following a period in which the UK experienced a more stable economic climate, with falling inflation and greater interest rate stability; increased political certainty following elections; and a surge in transactions ahead of anticipated changes to Capital Gains Tax.
Despite this fall in investment levels, the volume of deals in the region increased slightly from 157 to 160 year-on-year.
Investment in the Midlands accounted for 8.3% of total new PE backing in the UK. London continued to deliver the greatest interest from PE funds, attracting £78.1 billion of investment, ahead of the North West (£20.0 billion) and the South East (£15.8 billion).
Stuart Sewell, Head of M&A for the Midlands at KPMG UK, said: “Although private equity investment by value in the Midlands fell in 2024, deal volumes remained encouraging, with interest rate cuts likely to stimulate the market in 2025.
“Once again the Midlands made a solid contribution in terms of national investments and the region’s plethora of innovative businesses look to be in good shape to target even larger deals in the coming months.”
