Mid-market private equity investment in Yorkshire fell in the first half of this year, according to KPMG UK’s mid-year private equity pulse.
The mid-year study into private equity deal activity found that interest in the region’s mid-market declined, with 24 deals completing and deal volumes falling by 20% compared to H1 2024.
The findings reflect a backdrop of economic uncertainty, influenced by ongoing geopolitical developments and concerns surrounding the potential impact of trade tariffs.
Bolt-ons remained the largest component of mid-market private equity activity across Yorkshire. Traditional and leveraged buyouts (LBOs) were the second largest deal type, followed by minority investments.
Yorkshire’s mid-market private equity interest accounted for 6% of the total mid-market private equity backing in the UK. Deal activity in the mid-market slowed down across all regions in the UK, except the South West, which experienced increased activity in terms of deal volume, compared with the first half of 2024 (28 vs 22).
Giles Taylor, head of corporate finance in Yorkshire at KPMG UK, said: “The Yorkshire private equity mid-market experienced a significant pullback in the first half of the year, with deal volumes down year-on-year. A more cautious investment climate, shaped by geopolitical tension and uncertainty around global trade, has understandably slowed deal progression.
“That said, interest in the region remains, and we’re seeing real signs that investors are becoming more active, focusing on resilient sectors and quality assets. Strong activity levels through the summer, normally a seasonally quiet period, give real reason for optimism. With the Autumn Budget on the horizon and tariff impacts becoming clearer, we expect activity to pick up pace in the latter half of 2025.”
