UK mergers and acquisitions are hurtling towards a record annual total, but private equity firms are being shut out of the biggest deals. M&A value reached £178.9 billion in the year to July 7, putting the market on course for an annualized £347 billion — a figure that would eclipse the previous high of £309.2 billion set in 2015, according to data from PitchBook.
The dominance of corporate buyers, armed with cheap financing and strategic rationale, has squeezed out private equity sponsors. The top 10 deals alone accounted for roughly 52% of overall M&A value, yet PE sponsors captured just 15.1% of that value. By contrast, in smaller transactions, PE firms typically play a larger role, but at the top of the market they are being left behind.
“UK M&A value on track to reach £347 billion in 2026, but private equity accounts for only 15% of top deals.”
Two of the largest deals illustrate the trend. In February, French utility Engie bought UK Power Networks for an equity value of £10.5 billion. Around the same time, Nuveen acquired asset manager Schroders for £9.9 billion. Both were corporate-led transactions, structured with financing options that PE firms could not easily replicate.
The sidelining of private equity in the biggest deals marks a shift from previous boom years, when sponsor-backed buyouts often dominated headline values. This time, deep-pocketed corporates are using stock, debt, and cash combinations that PE funds cannot match, particularly in a higher-interest-rate environment.
If the current pace holds, 2026 will see the highest M&A value in UK history. But for private equity, the record year will come with a sting: the biggest prizes are going to someone else.