Tough year for Yorkshire and Humber private equity activity but there are reasons to be optimistic in 2024

Activity picked up in the second half of the year, with eight deals completed, up from six deals in the first half. Average deal value declined, however, dropping from £43.3m in H1 to £13.3m in the last six months of the year.

Activity was driven by Equistone’s acquisition of Nexus in the first half of the year, which contributed to 34 per cent of the region’s deal value in 2023, whilst the £60m sale of Fera Science in the latter half of the year accounted for 74.7 per cent of deal value in the second half.

Similar trends were seen across Europe, with dealmaking within traditional sectors such as manufacturing, business and support services, and financial services holding comparatively steady as firms seek value and stability in an otherwise difficult market.

However, technology, media, and telecom and healthcare, two sectors which experienced a remarkable pandemic-era boom, have experienced major corrections, with valuations and volumes both falling drastically.

The north of England as a whole remained the UK’s most active area outside London, with 35 transactions completing across the region in 2023. However, deal value still lagged behind that of London and the South East, totalling £1.6bn across the North compared with £5.4bn in London and £1.7bn in the South East.

Sebastien Leusch, investment director at Equistone Partners Europe, said: “Despite what has been another slow year for private equity activity both in Yorkshire and the Humber, nationally and across Europe, there’s good reason to feel optimistic as we head into 2024.”

He added: “We’re expecting to see a number of attractive deals come to fruition in 2024, so there’s plenty to be optimistic about in the New Year.”