Private equity deals in the South West are expected to rise this year, driven by strong availability of capital and credit after inching ahead by just 4% in 2025, new research shows.
According to the latest UK Private Equity Review from KPMG UK, 127 transactions were completed in the region last year as confidence was hit by geopolitical tensions, tariff uncertainty and ongoing economic challenges.
KPMG UK South West head of corporate finance John Levis
However, the South West outperformed the UK as a whole, with the national picture showing a fall of 10% year on year.
Private equity exits in the South West were steady year-on-year (18 vs 17). In 2025, exit activity was stronger in the first half of the year, with a total of 10 exits completed, compared to seven completed in the second half.
Bolt-ons remained the most common deal type year-on-year, with 83 completed, as investors looked to build scale in their existing platforms. This was followed by minority investments, of which 20 were completed – a slight increase from 18 the year before.
Deal activity in the South West was level across both halves of 2025, with 64 transactions completed in H1 and 63 in H2.
The South West’s private equity interest accounted for 7% of the total PE backing in the UK.
John Levis, head of corporate finance in the South West at KPMG UK, said: “the private equity community continued to see bolt-on acquisitions as a pathway to deploying capital amid challenging market conditions throughout 2025.
“It’s great to see private equity transactions across the South West grow year-on-year, supporting regional businesses in delivering their growth ambitions.
“The South West is one of the country’s most vibrant dealmaking environments, with fast-growing businesses continuing to attract significant investor interest. We’re optimistic the region’s strengths in sectors such as technology and energy will see deal activity accelerate in 2026.”
Nationally, the review found that 1,751 deal transactions were completed in 2025, a fall of 10% year on year.
While overall volumes recorded were lower than the post covid rebound in 2021 and 2022, they remain significantly higher than the average recorded in the years immediately prior to covid.
More deals completed in the first half of the year, with 881 transactions in the first six months of 2025.
Bolt-ons remained the most common deal type, making up 59% of overall deals, as investors looked to build scale in their existing platforms, however bolt on volumes were 5% lower than their historical average. The volume of buyouts surged to their highest level since 2021 (298 reported deals).
KPMG said confidence was expected to return this year, helped by record levels of available capital, more businesses coming to market, and a renewed focus on improving how companies operate.
There was also growing interest in sectors such as defence‑related industries and AI‑enabled business models, where investors see long‑term growth potential.
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