'Encouraging' signs for private equity dealmaking in Yorkshire and the Humber

Despite this increase in volume, the value of deals in the region dropped slightly from £263m in the first half of 2023. The report stated that this was likely reflective of a continued drop in 'mega deals'.

Andi Tomkinson, partner at Equistone Partners Europe, said: “It is encouraging to see buyout activity recovering in the region in the first half of the year, which is indicative of a nationwide increase in activity, with a drop in ‘mega deals’ contributing to a slight decrease in the value of deals.

“We are expecting the increase in activity we’ve seen so far to continue into the rest of 2024. We have completed a number of deals in Yorkshire over recent years, including Ligentia and Nexus Vehicle Rental, and there are many more ambitious management teams that are looking for investment to help grow and scale their businesses.”

The data is reflective of an increased interest in dealmaking in the North, with one Yorkshire and the Humber deal included in the UK’s top 25 – GBUK’s exit from its investment in H2 Equity Partners.

The North of England as a whole was once again the UK’s most active area outside London, with 28 transactions completing across the North East, North West and Yorkshire and Humber in the first half of 2024.

However, deal value still lagged behind that of London, totalling £1bn across the North compared with £5.8bn in London.

The UK has remained Europe’s largest and most active market, according to the report, with 95 buyouts valued at €16.1bn (£13.8bn).

Germany ranked second with 48 buyouts valued at €6.3bn (£5.25); France came third in terms of volume, with 45, but at a cumulative value of €1.7bn (£1.42) – with the snap election likely to further impact activity in the near-term.

"The UK is routinely the biggest and most active European private equity market, even when facing political upheaval, and has consolidated its position with this latest strong set of numbers," said Professor Kevin Amess, Director of CMBOR at Nottingham University Business School.

“In France, by contrast, political uncertainty often delays merger and acquisition activity, so its own snap general election may act as a further drag on French buyout values in what has already been a quiet year.”

CMBOR is based at Nottingham University Business School and supported by Equistone Partners Europe.