ECI Partners reports ongoing stability in the mid-market private equity sector, with 14 buyouts in the £150 - 300 million range for the trailing twelve months to Q1 2025. This performance is consistent with averages since 2021. In contrast, large-cap buyouts have plummeted due to a stagnant IPO market and smaller firms have seen transaction numbers drop sharply. Investors are increasingly focusing on high quality over quantity, with longer holding periods indicating a conservative approach amidst macroeconomic uncertainty. ECI's recent deals illustrate its successful navigation of this landscape.
In a tougher macro climate, investors are prioritising quality over quantity - backing businesses with stability, fantastic leadership, and clear growth potential.
Research from private market intelligence platform Gain.pro shows overall UK holding periods are now up to 5.3 years, a 10-year high, up from 4.1 years in 2020.
Despite broader challenges in the large-cap sector, the mid-market has proved stable in terms of dealflow but there are still many pent-up deals waiting for the right time to come to market.
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