Turmoil in the Eurozone sparked by the Greek debt crisis and ongoing fears over a slowdown in China have hit larger British corporates hard this year.
Yet the latest statistics, published by Cass Business School and private equity investor Lyceum Capital, suggest smaller enterprises – worth less than £50m – are in rude health and attracting increasing attention from buyout investors.
Between January and June this year, 80 per cent of UK private equity transactions in the £10m to £100m bracket involved the acquisition of controlling stake in a smaller company. The total value of deals amounted to £1.4bn, the highest level since 2013.
“We expect 2015 to be the third year in a cycle of strong private equity activity. Indeed, lower mid-market activity has been remarkably consistent in the past two years, with less volatility than other equity and financial markets,” Cass professor Scott Moeller said.