Suzanne Pike, Partner in ECI’s Origination Team, highlights the resilience of the mid-market amidst shifting trends across the PE landscape, according to ECI’s latest data analysis.
With 14 buyouts completed in the £150 – 300 million range across the trailing 12 months (TTM) to Q1 2025, up from 13 in Q4 2024 and 12 in Q3 2024, the sector has remained consistent with its long-term average of 14 deals completed per quarter since 2021, reflecting stability in the market.
The large-cap end of the private equity market, over £300 million, has seen a reduction in activity, with the number of completed buyouts in single digits, not helped by a clogged IPO market for exits. This has, in turn, caused larger funds to dip down into the mid-market, where there is more activity. Meanwhile, smaller-cap buyouts – firms valued up to £150 million – have dropped significantly, with only 26 transactions in Q1 2025 compared to 37 in Q4 2024 and 38 in Q3 2024.
Despite broader macro challenges, ECI highlights the importance of the flight to quality over quantity in private equity investments. High-performing companies are commanding high valuations as investors seek out companies with robust management strategies and solid growth trajectories.
ECI completed five deals in the 12 months to the end of March 2025, outperforming mid-market private equity during this period.
