Why Yorkshire is well placed for the private equity reset: Dave Parker

After a period of recalibration, investors are returning to the market with clearer priorities, stronger conviction and significant capital ready to be deployed. Our team at Addleshaw Goddard review our deal data and market experience to produce an annual PE Insights Report on the current state of the Private Equity nation, and this year it points to a sector that has adapted, matured and is now better positioned to support ambitious businesses across the UK. Nowhere is that opportunity more evident than in Yorkshire, where the blend of innovation, sector diversity and commercial resilience is an especially strong match for what private equity is seeking in the year ahead.

What is striking about the current landscape is how closely investor priorities now align with the shape of Yorkshire’s economy. PE funds are focusing on businesses with resilience, and often with a focus on recurring revenues (given the turbulent global environment we find ourselves in). This has translated into the most popular sectors for investment being in technology, financial services and healthcare.

These are sectors that have been driving growth with Leeds’ well‑established digital and fintech scene, Sheffield’s cluster of health innovation companies, and the region’s strong financial and insurance services base, each representing exactly the kind of high‑quality, stable revenue models that sponsors are prioritising. In addition, there is also a turn back to more traditional sectors, of advanced manufacturing and engineering/infrastructure focused businesses, given these businesses should be a “safe haven” in a world that may be disrupted by artificial intelligence. Again, this region is well placed to capitalise on this.

One of the quieter trends in private equity for 2026 is a growing openness to defence investments, which was historically “off the table” for private equity. As the Government steps up spending in the UK defence supply chain, as a national security priority, there is fresh attention on the kind of advanced engineering firms and industrial innovators that Yorkshire has produced for generations. For many of these businesses - often family‑owned, often underpinned by decades of specialist know‑how - PE interest could bring a route to scale that has previously been out of reach.

Deal execution itself is also changing, and this matters for businesses considering an approach. Transactions are taking longer and diligence is deeper. Where auctions once dominated, we now see more one‑to‑one negotiations as buyers take their time to explore risk. For sellers/owner-managers/founders, this means that preparation is more important than ever.

The next 12 months could reward those who prepare early - those who understand how buyer expectations have shifted, who invest in readiness, and who enter conversations with clarity on their growth story. For companies willing to grasp the moment, the coming year offers a rare window: a market rebounding with purpose, looking for exactly the kind of resilient, high‑quality businesses that define this region.

Dave Parker is a partner at Addleshaw Goddard