While hopes were high for a peak deal-making year in 2025, the UK market struggled with uncertainty. In the end, deal volumes sagged somewhat, with large-cap activity falling back to 2023 levels while mid-market activity remained steady.
There were certainly pockets of strong activity. Business Services – particularly accounting and legal service assets – were in high demand. Bolt-ons and primary buyouts were highly popular as investors sought to enhance the value of their underlying assets through scale and synergies, while accessing talent. Mid-market dealmaking remained resilient as new funds entered the market and investors looked for opportunities across the country.
Looking ahead, we remain cautiously optimistic that market activity will return in 2026, driven by a deep desire to deploy capital, conclude exits and deliver returns to LPs. At the same time, we expect the deals market to regain some of the confidence that was missing in 2025 as the political and economic environment stabilises.