The annual study into private equity deal activity found that 188 transactions were completed in the Midlands last year, a marginal rise of 2 per cent year-on-year. 

According to the report, confidence in the Midlands and wider UK market was affected by geopolitical tensions, tariff uncertainty and ongoing economic challenges throughout 2025.   

Deal activity in the Midlands was stronger in the second half of 2025, with 99 deals completed after June, compared with 89 in the first half, signalling positive market momentum.  

Private equity exits also increased in 2025, compared to the year before (23 in 2024 vs 27 in 2025), with activity higher in the first half of 2025, with a total of 15 exits completed, compared to 12 in the second half.  

Bolt-ons remained the most common deal type year on year, with 118 completed, as investors looked to build scale in their existing platforms. This was followed by buyouts, of which 38 were completed – a 90% increase compared to the year before (38 vs 20). 

 The Midlands’ private equity interest accounted for more than 10% of the total PE backing in the UK.  

Stuart Sewell, head of M&A for the Midlands at KPMG UK, said: “Although marginal, the Midlands was one of only two regions where private equity deal volumes rose last year, underlining once again the resilience and vibrancy of our regional M&A market against a challenging backdrop.

“Notably, buyout activity surged, highlighting continued investor appetite for well-run businesses with a clear strategy for growth. 

“A pick-up in deal volumes in the second half of the year is a positive sign, and an abundance of dry powder and credit for transactions should see market momentum accelerate further as we move through the year. The climate is right for Midlands firms to press ahead with their expansion plans.”  

The review found that, nationally, 1,751 deal transactions were completed in 2025 - a fall of 10 per cent year on year.

 While overall volumes recorded were lower than the post-Covid rebound in 2021 and 2022, they remain significantly higher than the average recorded in the years immediately prior to Covid.

More deals completed in the first half of the year, with 881 transactions in the first six months of 2025. 

Bolt-ons remained the most common deal type, making up 59 per cent of overall deals, as investors looked to build scale in their existing platforms, however bolt on volumes were 5 per cent lower than their historical average.

The volume of buyouts surged to their highest level since 2021 (298 reported deals).