The volume of M&A deals in the UK undertaken by family offices and high net worth (HNW) individuals has increased by 13 per cent over the past year, with suggestions that activity has been boosted by factors including an influx of US investment and HNW individuals increasingly choosing to lead or co-lead M&A transactions.
New research from Pinsent Masons found that the number of UK M&A deals undertaken by HNW individuals and family offices reached 34 transactions during 2024/25, compared to 30 deals the year prior.
There was an even sharper increase in the total disclosed value of such transactions, which surged by 277 per cent from £450 million in 2023/24 to £1.7 billion in 2024/25, according to Pinsent Masons' research.
Pinsent Masons partner Sunjay Malhotra suggested that, in order to avoid the management and performance fees associated with private equity fund investment, HNW individuals were increasingly opting to act as lead or co-investors on M&A transactions.
He commented: “Many of these high net worths are entrepreneurs so they want to participate in the management decisions of the investee companies, which they would not get if they invested through a fund.”
“Whilst some of these deals are targeting trophy assets like football clubs or other sports brands, the majority of these deals are very pragmatic, driven by a desire to diversify investment and increase exposure to private assets.”
Football clubs and sports brands have emerged as a particularly attractive asset class among HNW investors, with a number of recent high-profile deals for UK sports and entertainment assets completed by HNW individuals and family offices.
Notable examples include the acquisition of a majority stake in Everton FC by Friedkin Group, the family office of Dan Friedkin, in December 2024 a and the August 2023 acquisition of a majority stake in Bristol Rovers by Kuwaiti HNW Hussain AlSaeed.
Malhotra added that there had been a “general increase in investment in private assets amongst institutional investors, endowments and foundations and now family offices and UHNWs” and that private individuals are often preferred by vendors as this can mean a quicker due diligence process compared to a sale to a corporate bidder or institution.
According to Malhotra, the increase can also be partly attributed to the well-publicised surge of UK activity on the part of US buyers, with such investors typically having a higher risk tolerance than HNW individuals and family offices from across Europe.
He said: “The high number of HNWs and family offices putting money on the table for UK companies is a very encouraging sign. It suggests that the UK continues to be innovative, producing companies of value that appeal to an international audience.”
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