2023-12-06-PitchBook-2023年三季度英国市场快照-英-21页_21页_869kb

UK Q3 2023 Private Capital Market Summary

Core Content

This report provides a comprehensive overview of the UK's private capital markets for Q3 2023, including macroeconomic trends, public and private equity performance, venture capital (VC) and private equity (PE) deal and exit activity, fundraising trends, and regional comparisons.

Main Trends

Macro Economic Overview

• Inflation: UK CPI declined to 6.7% in Q3 2023, down from 10.5% in Q2, but still above the Bank of England's target of 2%.
• Interest Rates: The UK Bank Rate reached 5.25% in Q3, continuing the upward trend.
• GDP Growth: Q3 GDP growth was at 0.0%, indicating a cooling economy.
• Currency: The pound depreciated against the dollar to £1.22 in Q3, compared to £1.29 in Q2.
• Unemployment Rate: Stabilized at 4.2% for the quarter.
• Wage Growth: Increased to 8.4% in Q3, reflecting ongoing economic pressure.

Public Equity Markets

• The FTSE 100 was up 5.5% year-to-date and 14.7% over the last year, lagging behind other European indexes like the DAX.
• The PE ratio of the FTSE 100 increased to 10.8x in Q3 from 10.1x in Q2.
• Two new public listings in Q3 were PE-backed, but the LSE remains less attractive for tech firms like Arm.

Private Equity (PE)

Deal Activity

• PE dealmaking increased in Q3 compared to Q2, driven by the listing of Arm.
• The top five PE deals in Q3 included two public listings and one reverse merger.

Top Deals

• Worldpay was acquired by GTCR for £10.0 billion.
• EG Group is the highest-valued PE-backed company in the UK at £15.1 billion.

Fundraising

• PE fundraising in the UK reached near 2022 levels, supported by megafund closures from Permira and KKR.
• BMO Private Equity Trust and Columbia Threadneedle Investments had the highest number of commitments to UK PE funds over the last three years.

Exit Activity

• The top five exits included two public listings and one reverse merger.
• Arm was the most significant exit in the quarter.

Venture Capital (VC)

Deal Activity

• VC dealmaking showed clear signs of recovery in Q3, continuing its upward trend since Q1.
• The highest-valued deal was Conigital, with a value of £500.0 million.
• Checkout.com remains the highest-valued VC-backed company in the UK with a post-money valuation of £29.8 billion.

Fundraising

• VC fundraising in the first nine months of 2023 reached 50.7% of 2022 levels.
• British Patient Capital had the highest number of LP commitments to VC funds over the last three years.
• SFC Capital had the highest number of investments at 330.

Exit Activity

• There were no public listings among the top five exits in the UK for the year.
• Conigital and Electric Sheep were the top VC-backed exits in Q3.

Regional Comparison (UK Cities)

Observations

• London dominates both VC and PE activity, with the highest deal values and counts.
• The disparity in activity between London and other UK cities is significant, raising concerns about regional diversity and government support.

European Comparison

Fund Performance

One-Year IRR by Asset Class

15-Year IRR

Key Players

Top Limited Partners in UK VC

Top Investors in UK VC

Top Limited Partners in UK PE

Top Investors in UK PE

Top Public Listings

Summary

The UK private capital market in Q3 2023 showed signs of recovery, particularly in the VC segment, while PE activity remained robust. Despite inflation still above target and continued rate hikes, there was a noticeable cooling in economic indicators. London continued to dominate both VC and PE activity, raising concerns about regional inequality. The government has taken steps to support startups and PE through new investment vehicles and the Research Ventures Catalyst fund, but regional disparities persist.