UK PE buyouts remain resilient in H1 as add-on acquisitions offset weaker M&A market

UK private equity deal activity remained resilient during the first half of 2026, with firms continuing to pursue buyouts and bolt-on acquisitions despite geopolitical uncertainty and a broader slowdown in mergers and acquisitions, according to new analysis from RSM UK.

Drawing on PitchBook data, the advisory firm found that UK private equity completed 797 buyouts during the first six months of the year, a modest increase from 782 in the same period of 2025. Activity eased slightly between quarters, with 394 deals completed in the second quarter compared with 403 in the first.

The strongest area of activity was add-on acquisitions, which rose 11% year-on-year to 602 transactions, underlining sponsors’ continued preference for expanding existing portfolio companies rather than pursuing new platform investments. By contrast, platform buyouts declined from 238 to 195 deals over the same period.

Sector activity was led by professional and business services, where private equity completed 362 transactions, up 4% year-on-year. Financial services recorded the fastest growth, with deal volumes increasing 45% to 107, while industrial transactions rose 6% to 110 deals.

The figures contrast with the wider UK deal market, where corporate M&A activity fell 18% year-on-year to 1,379 transactions in the first half, while venture capital investment declined 19% to 800 deals.

Salik Chaturbhai, private equity analyst and financial modelling lead at RSM UK, said sponsors remain cautious amid geopolitical uncertainty but continue to execute transactions where they can accelerate value creation.

He said the sustained increase in add-on acquisitions reflects firms’ preference for building scale through existing portfolio companies rather than undertaking larger standalone acquisitions in the current environment.

Chaturbhai also highlighted artificial intelligence as an increasingly important consideration for investment decisions, with private equity firms placing greater emphasis on understanding how technological disruption could affect portfolio company business models and long-term value creation.

RSM UK’s head of private equity, Stuart Clowser, said subdued exit markets continue to present challenges, although ageing fund vintages mean sponsors will increasingly need to realise investments and return capital to investors.

He added that firms capable of improving portfolio company performance and proactively managing operational and technology-related risks are likely to be best positioned to generate liquidity as exit activity gradually recovers.

The findings suggest UK private equity continues to outperform the broader M&A market, with firms relying on buy-and-build strategies and operational value creation to sustain investment activity while waiting for more favourable exit conditions.