Private equity investment in South West rises but deal volumes fall

West Country firms attracted billions of pounds of private equity investment last year although the total number of deals fell slightly, a new report has found. Investment activity in the region grew by 3.4% over the year to £6.2bn, according to the latest UK Private Equity Review from KPMG UK.

The findings reflect a period in which the UK experienced a more stable economic climate, with interest rates and inflation falling; greater political certainty following elections; and a surge in transactions ahead of anticipated changes to capital gains tax.

Across the region, there were 100 deals in total - dropping from 104 the year before. KMPG said the fall was driven by suppressed deal volumes in H1, followed by strong recovery in H2, with the Autumn Budget contributing to transactions increasing by 32.6%.

Investment in the South West accounted for 3.9% of total new private equity backing in the UK. London continued to deliver the greatest interest from private equity funds, attracting £78.1bn of investment, a