The UK government has held discussions with several leading private equity firms as it seeks to encourage more portfolio companies to list on the London Stock Exchange, amid continuing concerns over the decline in UK IPOs and the migration of listed businesses overseas, according to a report by the Financial Times.
The report cites unnamed people familiar with the discussions, as revealing that ministers and officials from Downing Street and the Treasury have met with firms including Hg, Clayton, Dubilier & Rice (CD&R), General Atlantic, CVC, EQT and Elliott Management over the past two months to explore ways of making London a more attractive venue for exits.
The talks form part of a broader government effort to reinvigorate UK public markets following a prolonged slowdown in IPO activity. Just seven companies have floated in London so far this year, while takeovers and overseas listings have continued to reduce the size of the UK equity market.
For private equity firms, IPOs remain an important exit route, but London has increasingly struggled to compete with other global exchanges. Several sponsor-backed businesses are considered potential listing candidates, including EQT-backed veterinary group IVC Evidensia and cyber insurance specialist CFC, both of which have been linked to possible flotations next year.
Elliott Management-owned bookseller Waterstones is also reported to be evaluating a public listing, with London and New York both under consideration, while Hg-backed software company Visma had previously been viewed as a potential flagship London IPO before market volatility delayed those plans. Athletic apparel company Gymshark, backed by General Atlantic, has also been viewed as a possible future listing candidate.
People familiar with the meetings said discussions covered a range of policy initiatives aimed at improving London’s competitiveness, including reforms to stamp duty, pension fund investment rules and measures adopted by other European markets, particularly Sweden, to encourage domestic equity investment.
The government has already introduced several reforms designed to boost the UK’s capital markets, including a temporary stamp duty exemption for newly listed companies, changes to stock option rules and lower free-float requirements that allow founders to retain larger ownership stakes after listing.
However, debate continues within government over whether to abolish stamp duty on share purchases altogether. Supporters argue the tax discourages investment in UK-listed equities and places London at a competitive disadvantage compared with overseas markets, while opponents point to the significant tax revenues it generates.
Concerns have also grown over the possibility of additional UK-listed companies shifting their primary listings to New York. Reports suggest the London Stock Exchange has identified around 20 companies with US depositary receipt programmes that could potentially consider such a move, adding to fears of a continued erosion of the UK’s listed market.
Despite those challenges, the Treasury said companies have raised £25.8bn through IPOs and follow-on equity offerings in London since the start of 2025 and reiterated its commitment to supporting public markets through ongoing regulatory reforms.
