Mid-market private equity investment in the Midlands held firm in the first half of this year, according to KPMG UK’s mid-year private equity pulse.
The mid-year study into private equity deal activity found that mid-market private equity interest in the region maintained at H1 2024 levels, with 41 deals completed.
The findings come despite a backdrop of economic uncertainty, influenced by ongoing geopolitical developments and concerns surrounding the potential impact of trade tariffs.
Bolt-ons remained the largest component of mid-market private equity activity across the region, making up more than half of all deals. Traditional and leveraged buyouts (LBOs) were the second largest deal type, followed by minority investments.
The Midlands’ mid-market private equity interest accounted for 11% of the total mid-market private equity backing in the UK. Deal activity in the mid-market slowed down across all regions in the UK, except the South West, which experienced increased activity in terms of deal volume, compared with the first half of 2024 (28 vs 22).
Stuart Sewell, head of M&A for the Midlands at KPMG UK, said: “While deal volumes remained flat in the first half of 2025, the picture is still positive in the context of a nationwide drop.
“The resilience of Midlands businesses is clear, and these results show a promising sign that capital is available for regional businesses demonstrating strong management and innovation. In times of relative uncertainty, it’s no surprise that bolt-ons are prominent as investors look to back management teams that are already delivering and sectors they know.
“The Midlands remains home to high-growth businesses that are still pursuing expansion, despite ongoing economic headwinds. Firms can therefore press ahead with cautious optimism, pushing for growth in the second half of the year”
