Yorkshire suffered slump in private equity activity in 2023, says KPMG report

On a national level, mid-market private equity investment activity declined by 10 per cent in 2023. A total of 675 mid-market transactions were completed during the year, representing a 10 per cent drop when compared to the 735 transactions completed in 2022. Meanwhile, the UK Private Equity market overall witnessed a more significant decline, with the total volume of deals down by 20 per cent from 1,802 in 2022 to 1,451 in 2023.

While across the board, deal volumes were down in 2023, Business Services remained the dominant sector for activity accounting for 44 per cent of all deals, followed by Tech, Media and Telco (TMT) which made up almost a fifth (18 per cent).

The number of UK mid-market private equity-backed exits remained low last year, with the volume also down by 10 per cent, from 202 deals in 2022 to 181 in 2023.

Giles Taylor, Head of Corporate Finance in Yorkshire and the Humber at KPMG UK said: “Across the UK, deals were impacted by challenging conditions last year, and the mid-market in Yorkshire and the Humber was no different. Despite this, the volume of deals completed in the region last year remained on par with pre-pandemic rates in 2019.”

“As inflation continues to fall, there is greater optimism amongst dealmakers for what’s to come in 2024. We expect to see this play out through greater activity and investments in the mid-market and beyond, as confidence starts to return to the boardroom and investment committees.”