Private Capital investment into UK business tops £29bn in 2024
New research by the British Private Equity and Venture Capital Association (BVCA) finds that in 2024, the total amount invested by private equity and venture capital in UK businesses was £29.4bn – a 44 per cent increase on the £20.4bn invested in 2023.
This increased investment has fuelled the growth of businesses across the UK, with six in ten (58%) of the businesses backed located outside of the capital. Investment in the East of England, North West and South West increased significantly in 2024. In 2024, private capital invested £4.7bn in the East of England, up from £1.3bn the previous year, driven by investment in IT and communications businesses. £2.3bn was invested in the North West compared to £885m in 2023, with more than half of this directed to biotech and healthcare businesses. In the South West, £2.2bn was invested compared to £717m in 2023, driven by investment in business products and services companies.
Of the almost 1,600 businesses which received private capital investment in 2024, nine in ten were small or medium-sized, showing the importance of private capital to the UK’s diverse entrepreneurial and start-up economy.
Private capital represents a growing part of the UK economy
Further analysis conducted by EY on behalf of the BVCA demonstrates the growing role that the private equity and venture capital industry’s play in the UK.
Private capital now makes an annual economic contribution of almost £200bn to the wider British economy, equating to 7% of GDP (up from 6% in 2023). This economic contribution is underscored by the fact that the private equity and venture capital industry is characterised by its approach of investing for the long term, which provides a stable business backer in times of both prosperity and uncertainty.
The sector now supports over 2.5 million jobs in 2025, up from 2.2 million in 2023. These jobs are in a range of sectors right across the nations and regions of the UK, with over two thirds (69%) of jobs supported being outside of London. These are in businesses that range from some of the largest multinational corporations to the newest innovative start-ups.
Commenting, BVCA Chief Executive Michael Moore said:
“Private capital is a driving force for growth. By investing £29bn into British businesses in 2024, our industry is investing for the future, supporting jobs and helping to foster the entrepreneurs of tomorrow.
“This industry’s investment touches all four corners of the United Kingdom, helping to ensure that those businesses in the nations and regions have similar opportunities for growth as their counterparts in the capital.
“However, to enable this level of investment to continue, it is important that the Government ensures that UK remains an internationally attractive destination for private capital investment at a time of increasing geopolitical uncertainty.”
Notes to Editors
- The Report on Investment Activity 2024 can be found here.
- The Economic contribution of UK private equity and venture capital in 2025 can be found here.
Data sources
The BVCA collects data from members on an annual basis covering fundraising, investments and divestments in each calendar year. All BVCA members who hold General Partner membership and are primarily based in the UK are required to complete the investment activity survey. To be included in the current year survey, a firm had to be a full GP member of the BVCA as at 1 January 2025. In 2022, the BVCA took the decision to widen the scope of captured activity to monitor wider market trends more accurately. The activity dataset now includes the following categories of data:
- Activity data provided by private equity and venture capital BVCA member firms.
- Activity data provided by non-member private equity and venture capital firms to other national associations that are part of the European Data Cooperative (‘EDC’).
- Activity data of private equity and venture capital firms that was obtained from publicly available sources.
The BVCA together with other national associations have supplemented data provided by members and used estimates where appropriate.
Background
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, we represent the vast majority of all UK-based private capital firms, as well as their professional advisers and a large base of UK and global investors. The private equity and venture capital industry has a vital role to play in driving national and regional growth. Currently over 13,000 companies, employing more than 2.5 million people, are backed by private equity and venture capital investment in the UK.
Private Equity
Private equity investments typically support management buyouts and managing buy-ins in mature companies. Private equity businesses operate an active ownership model which involves working with portfolio companies to improve management capability, operational efficiency and use of technology. Public First analysis for the BVCA estimates that private capital backed businesses increase their productivity by 1.1% per year more than the business population as a whole. If this productivity growth was realised across all private enterprises from 2025, the UK economy would be £100bn larger by the end of this Parliament (2029).
Venture Capital
The UK’s venture capital market is one of the most important in the world. It is a fundamental driver of economic growth, providing finance and operational expertise for entrepreneurs and start-up companies. Venture capital funds invest in some of the most exciting and innovative businesses of the future. VCs take minority stakes in businesses, very often alongside other VCs and investors. Early-stage companies raise money in ‘rounds’ - which see further investment from either the same investors and/or new ones to support the company as it grows.
Media Contacts
For further information, please contact:
BVCA Press Office
Email: [email protected]
