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Private Equity Firms in the UK – June 2016

by Kathryn Sharpe

  • 09 Jun 2016
  • PE

Preqin’s Private Equity Online currently tracks 690 private equity firms based in the UK, which account for 27% of all Europe-based firms. Collectively, these UK-based firms have raised €316bn in investor capital over the past decade, and have an estimated €103bn in available dry powder, representing 47% and 44% of all Europe-based aggregate capital raised and dry powder, respectively.

London-based fund managers currently lead the UK’s total fundraising efforts; 81% (551) of all UK-based fund managers are located in London and have collectively raised €302bn, representing 96% of all capital raised in the past 10 years. The largest private equity firm in the UK is CVC Capital Partners (CVC), a global private equity firm that focuses on buyout and growth capital investments across a diverse range of industries. The firm closed its first growth fund in February 2016, securing $1bn, and its latest fund, CVC Strategic Opportunities Fund, is targeting $4bn for buyout investments. Unlike CVC’s more traditional buyout vehicles, CVC Strategic Opportunities Fund has an extended lifespan of 15 years and targets lower risk deals.

There has also been a rise in fundraising in the North of England: Manchester is home to a significant number (11) of fund managers, which have collectively secured €1.5bn in investor capital. The largest private equity firm based in the North of England is Manchester-based NorthEdge Capital, which has raised €650mn in investor capital in the past decade. The number of private equity firms based in the North of England and the amount of capital that the region attracts in the mid to long term is likely to increase with the UK Government’s ‘Northern Powerhouse’ initiative, a proposal to boost the economic growth in the North of England.

Preqin’s Private Equity Online currently tracks 203 UK-based funds in market collectively targeting €104bn in investor capital, which account for 55% of all Europe-based funds in market. The vast majority (79%) of these funds target the European real estate market, with only 7% targeting the US, followed by Asia (4%) and all other regions (10%). The largest UK-based fund in market is BC Partners’ Europe-focused buyout vehicle BC European Cap X, which is targeting €7bn in investor capital and focuses on a diverse range of industry sectors.

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