In Q2 2023, UK private equity (PE) deal value increased 13.2% quarter-over-quarter (QoQ) while the estimated deal count increased for the fourth straight quarter, signalling the start of a potential recovery in UK dealmaking. In light of tightening monetary policy, PE sponsors have approached dealmaking with more caution, which has translated into smaller deals; deals ranging from £100 million to £500 million have accounted for more than 60% of deals year to date (YTD). Take-privates and carveouts remain an important theme due to a combination of market timing and structural market issues. In Q2, financial services saw a record £10.0 billion in deal value, sending a clear message that the UK’s financial sector is still open to dealmaking.