Private equity interest in the South West on the up
Total private equity investment in the South West saw a marginal increase in 2024, according to the latest UK Private Equity Review from KPMG UK.
The annual study into private equity deal activity found that investment in the region grew by 3.4% in 2024, totalling £6.2bn. The findings reflect a period in which the UK experienced a more stable economic climate, with interest rates and inflation falling; greater political certainty following elections; and a surge in transactions ahead of anticipated changes to Capital Gains Tax.
The volume of deals in the region remained stable, falling from 104 to 100 year-on-year. This slight dip was driven by suppressed deal volumes in H1, and then followed by strong recovery in H2, with the Autumn Budget contributing to deal volumes increasing by 32.6%.
Investment in the South West accounted for 3.9% of total new PE backing in the UK. London continued to deliver the greatest interest from PE funds, attracting £78.1bn of investment, ahead of the North West (£20.0bn) and the South East (£15.8bn).
John Levis, head of corporate finance in the South West at KPMG UK, said: “It’s great to see PE activity in the South West increase in 2024 – testament to the ambition of the region’s innovative businesses.
“Generally, firms have started 2025 with much more clarity and confidence on the economic landscape ahead of them and the prospect of further cuts to interest rates that would serve to stimulate M&A. We’re looking forward to seeing South West businesses continue their growth journeys and attract further investment as a result.”
