Acquisitions by UK private equity firms of European corporates jumped 80% from 245 in 2020 to 442 in 2021, shows research by Accuracy, the global independent financial and strategic consulting firm.
Acquisitions by UK private equity firms of European corporates jumped 80% from 245 in 2020 to 442 in 2021, shows research by Accuracy, the global independent financial and strategic consulting firm.
This rise comes despite the ominous threat of the consequences of Brexit, and the partial lockdowns lasting until the end of 2021. The second quarter of 2021 was exceptionally busy, with a 50% increase in private equity deals compared to the first quarter.
Global private equity transaction activity into Europe in 2021 increased by more than 45% compared to the prior year and domestic private equity activity in the UK increased by more than 65% during the same period.
The higher than expected level of transaction activity is driven by the release of pent-up demand from 2020, and the resulting high level of cash held by private equity firms from the beginning of the pandemic. As deal activity increased, and firms amassed higher returns, this prosperity cycle resulted in record high investment by private equity firms, compared to the previous 5 years. This surge was more evident from UK investors into Europe, as the market has now adjusted to the current post-Brexit environment.
