'Deal volume down slightly, but holding steady' - KPMG

New analysis from KPMG UK has revealed that the number of UK transactions involving mid-market private equity investors in the South East fell by 18 per cent in the first half of 2023.

The firm’s latest Mid-Market Private Equity study, which tracks deal flow and sentiment, shows that 28 deals were completed in the South East in H1 2023, with a value of £2.55 billion, up slightly (1.7 per cent) on deal value in the first half of 2022.

In terms of the proportion of deals completed in the region, the South East accounted for over 8.5 per cent of all UK deals taking place in H1 2023, a slight fall from 9.1 per cent in H1 2022.

The picture also remained largely unchanged elsewhere in the country, with almost half of all mid-market deals (47.4 per cent) completed in the London region.

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On a national level, the report revealed that 327 deals worth £32 billion were completed in H1 2023, a reduction in volume of 12 per cent when compared with the same period in 2022.

For the overall private equity market, however, more clouds appeared on the horizon as 689 deals worth £70 billion were completed in the first half of the year, compared to 909 deals completed in H1 2022.

John Levis, Corporate Finance lead for KPMG in the South East said: “Against a challenging background of falling investor confidence due to inflation, rising interest rates, and geopolitical concerns, the South East has remained resilient, with deal volume down slightly in the first half of the year, but deal value holding steady.

''Well managed, profitable businesses are still attracting good values from PE investors. The slight increase in the value of transactions completed in the region can be attributed to larger transactions transitioning into the mid-market category, driven by broader dynamics within the market.”

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