Real Deals Autumn Sentiment survey

The UK lower-mid-market private equity sector is navigating a period of unprecedented transformation. Total deal volume year-to-date is down -15% on the same period last year, while total deal value is flat (source: Real Deals Database).

The sector has long been talking of ‘green shoots’ and a turnaround being ‘just around the corner’. So what’s market sentiment like? Are GPs content with their lot? Confident in the future? And what are the biggest pressures, challenges and opportunities they are facing?

We’re asking individuals among UK-based GPs to give their views on the state of the lower mid-market, and its prospects for the near future.

Responses are not used individually, and will be presented in anonymised and aggregated form to enrich peer dialogue and collective understanding. Real Deals will not be passing on any confidential information, nor present the data in any way so as to potentially identify respondents.

The data will appear as a written report for publication with aggregated insights and analysis from the data.

We’re very grateful if you’d take the estimated 10 minutes to answer this brief survey.

We’ll be making a £10 donation for every GP respondent, and commit to making the report available to respondents ahead of publication.

Please enter your email to get started – this will allow us to record your answers, and you will also be able to save and resume your form at any time by using the 'Save' button (the form does not save automatically)
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1. How would you describe your firm’s current volume of deal pipeline in the UK lower mid-market year-to-date, against the same time last year?

HigherSomewhat higherThe sameSomewhat lowerLower

2. To what extent are the following factors affecting deal activity? (1 = not at all, 5 = significantly)

	1	2	3	4	5
Availability of quality assets that meet investment criteria
Macroeconomic factors impacting asset valuations
Availability and cost of capital
Government incentives for private equity investors

2b. Other / comment

3. What are the most significant operational headwinds your firm is currently facing?(1 = not significant at all, 5 = most significant)

	1	2	3	4	5
Sourcing and retaining talent (at both the fund and portfolio level)
Managing inflationary pressures (inc. impact on portfolio management)
Navigating the increasing complexity of regulatory and compliance demands
Fundraising and managing LP relations
Macroeconomic uncertainty

3b. Other / comment

4. Which factors do you believe will have the most significant influence on UK lower-mid-market dealflow over the next three years? (1 = not significant at all, 5 = very significant)

	1	2	3	4	5
Macroeconomic stability and interest rate movements
Seller valuation expectations
The volume of available, high-quality assets
The availability and cost of debt financing

4b. Other / comment

5. Which of the following themes/sectors do you believe present the most attractive investment opportunities in the UK lower mid-market over the next three years? (1 = not attractive at all, 5 = very attractive)

	1	2	3	4	5
Artificial Intelligence and data
Energy transition and sustainability-linked businesses
Advanced manufacturing and industrial technology
Healthcare and life sciences
Business services and software

5b. Other / comment

6. In the current market, which value creation levers have become the most important for your firm's portfolio? (1 = not important, 5 = very important)

	1	2	3	4	5
M&A and "buy-and-build" strategies
Operational improvements (e.g., cost efficiency, margin enhancement)
Organic growth (e.g., new product development, market expansion)
Digital transformation and technology adoption
ESG integration and reporting improvements

7. How do you anticipate enterprise value multiples for new platform investments in the UK lower mid-market will trend over the next 12 months?

Decrease significantlyDecrease somewhatRemain largely unchangedIncrease somewhatIncrease significantlyOther (please specify or comment)

8. Over the next 12 months, which of the following liquidity routes are you likely to be deploying? (1 = not likely at all, 5 = very likely)

	1	2	3	4	5
Exit(s) to a strategic/corporate acquirer
Secondary buyout
Initial Public Offering
Continuation vehicle
Credit/debt (at fund/portfolio/asset level)

8b. Other / comment

9. When exploring external capital, which characteristics are most important to you? (1 = least important, 5 = most important)

	1	2	3	4	5
Cost of funds
Flexibility of facility
Speed of execution
Specialist expertise
Sector knowledge

9b. Other / comment

10. Which factors would most influence your firm to increase leverage in new deals? (1 = least, 5 = most)

	1	2	3	4	5
A material decrease in the base interest rate (e.g., a 100+ basis point cut)
A significant reduction in seller valuation expectations, creating more headroom
Greater stability and a more positive UK macroeconomic outlook
More flexible terms and structures offered by lenders

10b. Other / comment
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