'Real outlier': KMPG reveals Yorkshire bucking national trend on private equity deals
Private equity deals in Yorkshire and Humber have increased by more than one-third as the region stood out as a “real outlier” for investment, new research has revealed.
KPMG UK’s private equity pulse study into private equity deal activity found that interest in the region grew by 35 per cent in the first six months of this year compared to H1 2025, with 73 deals completed.
Private equity exits in the region decreased in H1 2026, with 12 transactions completed, a 20 per cent fall compared to H1 2025.
The mixed picture across Yorkshire and Humber reflects a backdrop of economic uncertainty, influenced by ongoing geopolitical developments and concerns surrounding the wider impact of AI across many sectors.
Bolt-ons remained the largest component of private equity activity across the region, with 47 completed, making up 64.4 per cent of all deals. Traditional buyouts, including leveraged buyouts, were the second largest deal type with 14 deals, followed by minority stake investments, of which there were eight.
Investment in Yorkshire and Humber accounted for 8 per cent of the total new PE backing in the UK. Deal activity by volume increased across four other UK regions in the first half of 2026 - the South East, South West & Wales, North West and the North East – compared with the first half of 2025.
Giles Taylor, Partner, Leeds at KPMG UK, said: “Our region has been a real outlier in the first half of the year, with private equity deal volumes rising by more than a third at a time when activity across the UK as a whole declined.
"That divergence is significant and reflects the strength of the region’s investment proposition.
"Yorkshire and Humber offers investors a broad base of established, well-managed businesses across sectors, many of which have clear opportunities to scale, consolidate fragmented markets and expand internationally. It is that combination of resilience and growth potential that has helped the region attract capital despite a more cautious national backdrop.”
Phil Murden, Leeds Office Senior Partner at KPMG UK, added: “With a strong start to the year for the region, the opportunity now is to turn that underlying strength into sustained momentum through the rest of the year.
"The arrival of a new government with deep roots in the North, alongside its early focus on devolution and regional economic development, should bring greater attention to the infrastructure, skills and investment needed to unlock growth across Yorkshire.
"Combined with the level of undeployed private equity capital in the market, that gives us good reason to be optimistic that the region can carry this momentum into the second half of 2026.”
Nationally, UK-wide private equity deal activity slowed in the first half of 2026.
The firm’s most recent M&A study revealed that deal volumes fell 3.4 per cent year on year, with a total of 888 deals closed throughout the first half of 2026, compared to 919 over the same period in 2025.
Alex Hartley, Head of Corporate Finance at KPMG UK, said: “While uncertainty caused by the conflict in Iran led many private equity houses to re-assess or delay deals, the defining feature of the market this year has been concern over AI’s impact on certain sectors. As dealmakers gain confidence around this and potential impacts on valuations, overall volumes should lift as the year progresses.
“However, potential tax changes under new leadership in Government could dominate the market later this year, particularly if investors anticipate changes to capital gains tax. Any speculation could trigger a flurry of activity, as we saw at the end of 2024.”