Private equity shows resilience as add-on deals drive H1 activity
The UK private equity deals market is proving resilient as it presses ahead with buyouts in H1 2026, despite ongoing geopolitical uncertainty and a slowdown in the wider deals market, according to analysis of PitchBook data by leading audit, tax and consulting firm RSM UK.
PE activity was driven by add-on deals in H1 which were up 11% from 544 in 2025 to 602 in 2026, while platform deals were down from 238 to 195 in the same period. UK PE buyouts were slightly higher in H1 2026 at 797 deals, compared to 782 in H1 2025, and fell quarter-on-quarter from 403 in Q1 2026 to 394 in Q2 2026.
There was an uptick in deals across industries, including professional and business services (up 4% to 362 in H1 2026), financial services (up 45% to 107 in H1 2026) and industrials (up 6% to 110 in H1 2026).
However, across other deal types, corporate M&A declined by 18% from 1,684 in H1 2025 to 1,379 in H1 2026, while venture capital deals dropped 19% from 985 to 800 in the same period.
Salik Chaturbhai, Private Equity Analyst and Financial Modelling Lead for PE at RSM UK, said: “Geopolitical uncertainty is causing private equity firms to proceed with caution, but they’re still pushing ahead with deals where they can accelerate value creation. The continued strength in add-on activity demonstrates that firms remain focused on enhancing existing platforms rather than taking on the risk of larger standalone investments. It’s encouraging to see PE activity hasn’t followed the same decline seen in the corporate M&A market, which is perhaps more exposed to current market conditions, leading buyers and sellers to pause their plans.
“The bigger concern for PE is the pace of technological change, particularly AI, which is making PE firms rethink where and how they choose to invest. Understanding exactly how AI is impacting business models will be key.”
Stuart Clowser, Head of Private Equity at RSM UK, said: “While the exit market remains subdued, many portfolio companies are owned by a private equity fund with a 10-year termination date, therefore transactions will need to occur. This presents a significant opportunity for firms with strong experience and expertise to drive value and liquidity for investors through operational improvement. Uncertainty is likely to persist, particularly risks from new technologies, which are quickly evolving business models. Businesses with low technology risk are continuing to transact, and private equity firms who proactively monitor and manage risks before taking a portfolio company to market are continuing to create liquidity.”