Private equity deal activity stabilises in Q2 2025, with tech the first to bounce back
Private equity (PE) deal activity stabilised in Q2 2025, after suffering a drop off in the previous quarter, with the tech industry being the first to bounce back, according to analysis of PitchBook data by leading audit, tax and consulting firm RSM UK.
UK PE buyouts rose 3% from 317 in Q1 2025 to 327 in Q2 2025, but were down 16% from 391 in the same quarter last year. After dipping across all industries in Q1 2025 (down 32%), the technology and media industry appears to be the first to bounce back, with PE buyouts up 34% from 56 to 75 in Q2 2025. The consumer industry was also up 13% from 47 to 51 in the same period. Buyout activity was driven by a rise in add-ons, increasing 54% from 41 in Q1 2025 to 63 in Q2 2025 for the technology and media industry, and up 40% from 25 to 35 in the consumer sector.
UK corporate M&A deals rose from 601 in Q1 2025 to 620 in Q2 2025, with the biggest increases in the technology and media industry (up 19% from 96 to 114) and the consumer industry (up 17% from 154 to 180). However, the total number of venture capital deals dropped a further 27% from 461 to 337 in the same period.
Salik Chaturbhai, Private Equity Analyst and Financial Modelling Lead for PE at RSM UK, said: “It’s positive to see PE buyouts picked up in Q2 after a slower than expected start to the year. PE is feeling the strain across several fronts, with pressure points not only in deal activity but also fundraising and portfolio performance. That said, there remains plenty of opportunity for firms that are proactive with strategic add-ons and value creation strategies.”
“The technology and media industry is ahead of the game, as one of the first sectors to bounce back from Q1’s dip, fuelled by growth in add-ons. It’s also encouraging to see the consumer industry holding up relatively well. Despite facing external shocks, there are still opportunities to be found, including those driven by strategic add-ons.”
Stuart Clowser, Head of Private Equity at RSM UK, said: “While the challenging market looks like it’s here to stay, this creates space for well-prepared firms to step in and add value. We expect much of this year’s volume growth to take place in the second half of the year, but for that to happen, PE firms need to adapt, focusing on industry experience and embracing technology to deal with risks appropriately. It’s imperative that investment teams possess deeper industry knowledge, including having a strong understanding of sector-specific risks and the most appropriate strategies, so they are best placed to support growth.”