Private equity firms shun UK companies as values plunge

Michael Bow
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UK PRIVATE equity activity has tumbled by more than 50 per cent since last year, amid a fall in the fundraising power of London based firms, new figures show.

Despite a booming deal environment in the US and Asia, figures show the amount of money spent by private equity executives on British companies since the start of this year has plunged to £3.23bn, down from £7.57bn for the same period a year earlier.

The value of British companies being sold has also fallen by 52 per cent, according to the figures from Mergermarket.

The figures come alongside an annual list showing UK private equity firms are losing market share to US and Asian houses.

Five-year fundraising totals for London-based firms in the biggest 50 private equity companies in the world have fallen to $41.6bn (£26.8bn), down from $80.4bn last year.

The list, compiled by Private Equity International, shows Texas based TPG with the biggest fundraising total for the third year in a row at $35.7bn. Nine out of the top ten biggest firms are US based, with CVC Capital Partners the only UK firm in the top ten.