Part 1 - Key Trends Shaping UK Private Equity Investments

The Outlook for Q4 and 2027

Tony Goldsby Director

Lord Interim partner with many of the UK’s marketing leading and highly respected SME and mid-market private equity portfolio investment companies.

We look ahead at what 2027 may bring in a series of articles over the next few weeks…

UK private equity and venture capital firms may enter 2027 with a fresh outlook. Funding debt became cheaper in late 2025 and stayed consistent with increased competition among lenders throughout 2026. However, affordable debt is no longer doing the heavy lifting, exits remain selective, and investors are asking harder questions about cash flow, resilience, and the path to real growth.

Investors, founders and management teams will need to prove value creation before signing and the private equity firms that adapt to this disciplined market should still find strong opportunities across the UK.

Confidence in PE activity increasing into 2027 will be driven by any easing of interest rates and economic confidence stabilising. Many funds have capital to invest, and owners who delayed sales throughout the 2023-2026 years may come back to market in 2027.

The recovery is unlikely to be rushed. Buyers remain careful about quality of earnings, debt capacity, exit visibility and Investors want to know who the next buyer could be, whether that is a trade buyer, private or public markets.

For sellers, preparation will be key. Businesses that can show clean financials, strong governance, and a credible three-year plan should attract more interest than companies with a good story but weak proof.

Take-private deals will also remain positive. The UK markets have seen a long-running debate about valuation gaps, especially for smaller listed companies. Some businesses trade at prices that private equity firms see as attractive based on their cash flow, assets, or strategic value, particularly when;

• Management wants more room to invest away from public market pressure

• The business has a clear plan to improve margins or simplify operations

• There are non-core divisions that could be sold or separated

Operational value creation will matter more than financial engineering, which is key to how Lord Interim works with clients, delivering subject matter and fractional Interim expertise to support private equity portfolio companies in their market preparation.

To find out more about Lord’s range of Value Creation Diagnostic and Interim management support, call Tony Goldsby; London Office on 020 7692 8968 or Birmingham Office on 0121 445 7900 – or email tgoldsby@lord.co.uk

Read Part 2 - 2027 will reward the buyer with the clearest plan, the strongest due diligence, and the patience to build value after the deal closes.