UK IPO Slump Hurting Private Equity and Venture, PitchBook Says

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(Bloomberg) — The UK’s sluggish market for initial public offering is leaving private equity and venture capital firms with fewer exit routes, increasing their reliance on sales to other buyout shops or large corporates for returns, PitchBook data show.

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An IPO has traditionally been one of the three main routes for investors to get a return on their equity, alongside acquisitions and buyouts. But as London’s public markets experience a drought, with fewer companies interested in listing in the UK, sponsors are finding that avenue closed, according a PitchBook report on Friday. 

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There have been just seven private equity-backed IPOs in the UK over the past five years with two of those priced in 2026, PitchBook said in its report. The London Stock Exchange has seen more companies delist than list every year since 2022.

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While PitchBook said UK private equity exit value is on pace for one of its strongest years on record, the figures suggest increased concentration, with a handful of names making up most of the returns. 

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Nine mega-deals in the UK accounted for about 58% of total exit value in the first half of 2026, according to PitchBook. 

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With fewer IPOs, private equity firms are increasingly relying on peer sales and corporate acquisitions to generate liquidity. PitchBook also reported a continued rise in take-private deals, as dampened public market valuations have made listed companies more attractive acquisition targets. 

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Last month, buyout firms KKR & Co. and Energy Capital Partners agreed to take DCC Energy Plc private for more than £5.7 billion ($7.7 billion). Apollo Global Management Inc. on Thursday said it had agreed to buy budget airline EastJet Plc, also for £5.7 billion. 

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In the first half of 2026, take-privates accounted for around 20% of realized UK private equity deal value.

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Venture Exits

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Despite government efforts to revive the market, including a three-year stamp duty exemption for newly listed companies introduced in 2025, the outlook for London’s IPO market remains stagnant, according to PitchBook. 

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UK companies are increasingly looking overseas when they do decide to go public rather than listing domestically. The share of UK companies listing at home fell to 46% in 2025 from 71% in 2019, PitchBook data show. 

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PitchBook’s VC exit predictor identified 87 UK companies with a high probability of exiting through an IPO as of the first half of 2026, including 27 artificial intelligence companies. However, many appear to be remaining private for longer or opting for acquisitions instead. 

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Companies including Waterstones Booksellers Ltd. and SumUp Payments Ltd. are eyeing London listings, but are considering deferring any public offerings until next year, Bloomberg has reported.

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A lack of exit opportunities has also made it more difficult for venture firms, which invest in startups, to return capital to their investors. But venture fundraising “showed signs of recovery” in the first half of this year, after record lows last year, according to PitchBook. 

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“However, activity remained heavily concentrated in a small number of mega-rounds, leaving the health of the broader ecosystem less certain,” PitchBook wrote in its report.

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