Private Capital industry sees appetite for IPOs returning, looking ahead to increased deal activity
- 11 Private capital firms are considering an initial public offering in UK markets for businesses in their portfolio in the year ahead.
- A balance of private capital industry leaders expects to increase investment in UK businesses over the next five years.
- The findings are being discussed at the BVCA’s annual Summit, which gathers over 1,000 professionals from across the industry in central London.
- Senior private capital executives believe a strong domestic economy and clarity on taxation and regulation is key to the UK being viewed as an attractive place to invest.
As many as 11 private capital firms state businesses in their portfolios could make an initial public offering (IPO) in the UK over the next 12 months, indicating that the industry expects an uptick in dealmaking activity in the coming months. The findings are part of a survey of 85 senior decision makers at leading private equity and venture capital firms carried out by the British Private Equity and Venture Capital Association (BVCA), ahead of its annual Summit.
The BVCA Summit brings together over 1,000 industry leaders from across private capital, including fund managers, institutional investors and family offices. Speakers at the event include Sir Nigel Wilson, chairman of the Canary Wharf Group and Sarah Cardell, chief executive of the CMA.
The BVCA’s Private Capital Pulse survey found that 27 investment firms are considering an IPO for a business they have invested in during the next 12 months, representing a third of the firms responding to the survey.
When asked where these companies may seek to list, the US is the most popular destination under consideration, being considered by 26 private capital firms. The UK is seen as a more popular option than the rest of Europe, which is under consideration by 6 firms.
This would represent a turnaround from recent years, which have seen a seen a slowdown of IPOs in UK capital markets, with just 17 across main markets and AIM in 2024, none of which were backed by private capital. The role private capital can play in repopulating UK indices can be seen in a report from McKinsey and Co. which confirmed that 65 per cent of UK-originated IPOs in the past ten years were for companies that had been fully or partially owned by PE firms—compared with 32 per cent in the United States.
BVCA chief executive, Michael Moore, said:
“The BVCA Summit sets the tone for the year ahead in the industry, and this year the industry is focused on how getting the right environment to invest in businesses which will drive growth in every nation and region of the UK.
“We are seeing growing numbers of private capital firms looking ahead to increased deal activity, including bringing businesses within their portfolio to public markets. Healthy public markets are vital for growing the economy, and it is important that the UK’s public markets are supported through a tax and regulatory environment which encourages entrepreneurialism.”
Chancellor of the Exchequer, Rachel Reeves said:
“Private investment is central to unlocking growth – giving British businesses and workers the tools they need to succeed.
“Every new listing cements this country’s reputation as the home for ambitious companies with global potential. That’s why, through our Plan for Change and the Leeds Reforms, we are making it easier for firms to raise capital and for investors to back them, giving businesses the certainty they need to thrive and ensuring the UK remains one of the most attractive places in the world to invest, scale and succeed.”
Private capital industry set to increase investment in UK businesses
In 2024, private capital investment in the UK rose by 44% year-on-year to £29.4 billion. From life sciences in Cambridge, to renewables in Teesside, and from cyber startups in Belfast to advanced manufacturing in the Midlands, private capital already supports 2.5 million jobs and contributes nearly £200 billion to UK GDP, with over half of that impact felt outside London.
Private capital investors believe the UK remains an attractive place to invest. Four in ten (39%) of those surveyed view the UK as a good or excellent place to build a business compared to just one in five (20%) who state the UK is not an attractive investment destination.
A balance of investors expects to increase their investment in the UK in the coming five years, with 29% likely to invest more compared to 20% who expect to reduce their investment.
Asked what determines whether the UK is an attractive place to invest, a strong domestic economy, clarity around long-term approach to taxation and the regulatory environment were the most commonly cited factors.
With £190 billion in UK managed private capital ready to be deployed, the BVCA is calling for Britain to cement its place as the premier global hub for the industry. This will only happen, however, if the conditions for investment continue to improve. To drive investment-led growth, ahead of the Autumn Budget, the BVCA urges the Government to:
- Reform the tax relief system to reward long-term investment
One of the clearest opportunities lies in reforming the UK’s tax relief system. The current patchwork of reliefs is outdated and falls short of channelling investment where it is most needed. Better targeting and a modernisation of the system is needed to ensure long-term investment, encourage the use of patient capital, support high-growth sectors and drive regional investment. There is a particular opportunity to boost investment in scale-ups through reform of the EMI, EIS and VCT schemes. It is vital to ensure that the R&D system works effectively without causing unwanted and damaging issues in company operations and cashflows.
- Champion regulatory innovation
The UK has an opportunity to champion smart regulation and innovation with clear, predictable and proportionate rules that can unleash investment and give investors' confidence By expanding use of agile tools like sandboxes, fast-track approvals in innovative areas, and setting stable long-term roadmaps, the UK can unlock greater private capital investment into exciting and high-potential sectors, like AI, life sciences, clean tech and defence. Smart regulation is key to converting the UK's cutting-edge research into scale-ups, exports and global competitiveness.
- Go further and faster in reforming pensions
The Government’s pension reform agenda must continue at pace to ensure UK pensions funds are able to invest effectively in private capital funds which back scale up businesses in every nation and region of the UK. The BVCA is calling for the creation of an initiative modelled on France’s successful Tibi Scheme. Called ‘NOVA’ (New Opportunities for Venture and growth Acceleration), the scheme would create a market of private capital funds specially accredited for DC schemes to facilitate investment in strategically important sectors.
Michael Moore, added:
“The UK can be at the forefront of a new wave of global investment, but to do so, the Government must help ensure that the UK is the most attractive destination it can be. Private capital already supports jobs, backs growth and invests across all the nations and regions of the UK, but this industry can go even further with the right conditions in place.
“Industry needs to see the Government go further and deliver on tax, pensions and regulation. Private capital is standing by to invest even more into Britain's future, but only if, as a nation, we adopt a system that is pro-growth, pro-innovation and globally competitive.”
Notes to Editors
The BVCA Summit brings together over 1,000 individuals from across private capital, including, fund managers, institutional investors, pension funds and family offices.
Press passes for the BVCA Summit are available by contacting [email protected]
About the Private Capital Pulse survey
The BVCA surveyed 85 senior decision makers in private equity and venture capital firms between 13th August and 4th September 2025.
Survey respondents invest across the whole of the UK and at all stages of the private capital investment lifecycle - ranging from seed stage venture capital investors up to large private equity firms. Respondents included investment firm founders / partners, investment directors, finance teams and investor relations professionals.
For further information, please contact:
James Gribben, BVCA Senior Communications Manager
Email: [email protected]
Mobile: 07854897974
About the British Private Equity & Venture Capital Association
The British Private Equity and Venture Capital Association (BVCA) is the industry body and public policy advocate for the private equity (PE) and venture capital (VC) (private capital) industry in the UK. With a membership of over 600 firms, the BVCA represents UK-based private capital, as well as the wider ecosystem of professional advisers and investors. The private equity and venture capital industry has a vital role to play in driving national and regional growth. Currently almost 13,000 companies, employing more than 2.5 million people, are backed by private equity and venture capital investment in the UK.
