Mid-market private equity investment activity in the UK declined by 10% in 2023, as challenging macroeconomic conditions presented few glimmers of hope for recovery. Business Services remained the dominant sector for activity, followed by Tech, Media and Telco (TMT). However, the volume of TMT deals declined by almost a quarter to the lowest level seen in five years. Conversely, Financial Services was the only sector to buck the trend with an increase in investment activity.

Looking ahead, dealmakers are hopeful for economic stability, aided by falling inflation and a steadier, falling interest rate environment. Financing costs are likely to remain higher than we’ve seen for a long time, but the stability that underpins the confidence of Boards, Investment Committees and Credit Committees should support dealmaking activity.

We delve into this in more detail in our latest snapshot. Download it below.