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The North-west region has recorded a strong six months for private equity deals, according to provisional half-yearly data from CMBOR, the Centre for Private Equity and MBO Research based at Nottingham University Business School and supported by Equistone Partners Europe.
Private equity investors in the region completed over 20 deals worth £461 million in the first six months of 2022, with activity across the country remaining resilient despite turbulent economic conditions. Major deals included the sale of Stockport-based Interactive Investor for £1.5 billion, highlighting the continued strong performance of the tech sector in attracting private equity investment.
The region ranked fourth nationally in the number of deals completed, and exceeding the collective total of deals completed in Northern Ireland, Scotland and Wales. London, followed by the South-east topped the leaderboard of English regions in the CMBOR analysis.
Nationally, the UK remains the largest private equity market in Europe, with activity in second place France depressed by uncertainty over this year’s Presidential elections. The Netherlands was the second largest market by value, buoyed by a small number of high-value acquisitions, including of window blind manufacturer Hunter Douglas, whose UK operations are based in Heaton Mersey.
Andi Tomkinson, partner at Equistone Partners Europe, said:
“It is promising to see that the UK as a whole and the Northern region’s private equity markets are proving resilient in light of significant economic challenges. That is not to say investors are unaware of the turbulence ahead. There are clear pockets of distress however, many businesses have, and will continue to, remain active in the period ahead.”
Professor Kevin Amess, director of CMBOR at Nottingham University Business School, said:
“The UK buyout industry’s continued resilience is being driven by several key, high-growth sectors. The significant investment by private equity into TMT is a result of the sector having become absolutely core to the running of the global economy, while investment into healthcare continues to be powered by huge demand and significant public and private spending post-pandemic.”