The value of UK private equity deals undertaken by wealthy individuals has hit the highest in a decade, doubling to £2.3bn last year.
According to data from law firm Boodle Hatfield, low interest rates have made it easier for the society’s most affluent to fund private equity deals, with many looking to access asset class returns without needing to fork out fund management fees.
Private equity has also consistently outperformed the public markets with returns of 13.9 per cent per annum (on assets expected to be held for 10 years or more)compared to 5.6 per cent per annum for the FTSE All Share Index.
Tech was a huge area of growth in 2021, making up a quarter of all UK deals.
Indeed, the largest deal of 2021, by some margin, was the £2.2bn acquisition of a London-based kids entertainment company by two former Disney executives.
Other notable deals include the purchase of football clubs, Hull City and Wigan, as well as rugby club, Saracens. Trophy assets such as sports teams have typically attracted investment due to their prestige.
Looking forward, Kyra Motley, partner at Boodle Hatfield, said: “If interest rates remain relatively low we expect to see appetite for private equity deals to continue to be high”.