Private capital industry signals stronger investment intentions
- Almost nine in 10 (85%) private capital firms intend to maintain or increase their investment in UK businesses over the next five years
- While still cautious, private capital leaders’ view of the UK’s economic outlook has improved from negative territory in the Autumn
- Half (50%) of private capital leaders view the UK as a good or excellent place to grow a business
New research from UK Private Capital (formerly BVCA) finds that the vast majority (85%) of private capital firms expect to maintain or increase the amount they invest in UK businesses over the next five years. The findings are part of a survey of over 100 senior decision makers at leading private equity and venture capital firms carried out by UK Private Capital.
Its latest Private Capital Pulse survey found stronger investment intentions relative to an Autumn that featured rumours of a potential wealth tax and followed the recent rise in Employers National Insurance contributions. This was accompanied by an increase in positive sentiment around the UK economy.
The survey shows an improvement in industry leaders’ views on the UK’s economic outlook, with 29% optimistic or very optimistic, and similar proportion (28%) holding a pessimistic or very pessimistic view. While a cautious response, this represents a noticeable change compared to August 2025, when four in ten (40%) industry leaders held a pessimistic view.
Q. Are you more or less likely to invest in the UK in the next five years compared to the last five years?
|
|
August 2025 |
February 2026 |
|---|---|---|
|
Likely to invest a lot more |
7% |
8% |
|
Likely to invest more |
22% |
34% |
|
Likely to invest the same |
51% |
44% |
|
Likely to invest less |
16% |
12% |
|
Likely to invest a lot less |
4% |
3% |
Q: How optimistic are you about the economic outlook for the UK over the next five years?
|
|
August 2025 |
February 2026 |
|---|---|---|
|
Very optimistic |
1% |
2% |
|
Optimistic |
22% |
27% |
|
Neutral |
36% |
44% |
|
Pessimistic |
32% |
25% |
|
Very pessimistic |
8% |
3% |
Industry leaders who expected to increase investment in British businesses cited the UK’s legal environment, a focus on more competitive regulation and the start-up ecosystem as key reasons for their decision.
Those who stated they were likely to invest less highlighted recent increases to national insurance for employers, lack of investment by UK pension funds and DB schemes in VCs and cuts to entrepreneurs relief as impacting their views.
The UK also continues to be viewed as an attractive place to start and scale a business. Half (50%) of industry leaders say the UK remains a compelling environment for company building, underpinned by its depth of talent, strong rule of law and global connectivity, compared to just 12% who do not view it as attractive.
Q. What is your view on the attractiveness of the UK as a place to build a business?
|
|
August 2025 |
February 2026 |
|---|---|---|
|
Excellent |
4% |
9% |
|
Good |
35% |
41% |
|
Fair |
41% |
39% |
|
Poor |
18% |
10% |
|
Very poor |
2% |
2% |
The private capital industry has a vital role to play in driving national and regional growth. Currently over 13,000 companies, employing more than 2.5 million people, are backed by private capital investment in the UK. In 2024, the total amount invested by the industry in UK businesses was £29.4bn – a 44 per cent increase on the £20.4bn invested in 2023.
“Our latest temperature check of private capital leaders shows that views of UK’s economic outlook have improved from the autumn, and the industry expects the UK to remain a leading global hub for investment in the years ahead.
“While sentiment relating to the UK’s economic outlook has improved, it is important that the Government redoubles its efforts to create the best possible environment for private capital to invest in Britain.”
Notes to Editors:
For further information, please contact:
UK Private Capital Press Office
Email: [email protected]
About the Private Capital Pulse survey
UK Private Capital surveyed 101 senior decision makers in private equity and venture capital firms between 05 and 18 February 2026.
Survey respondents invest across the whole of the UK and at all stages of the private capital investment lifecycle - ranging from seed stage venture capital investors up to large private equity firms. Respondents included investment firm founders / partners, investment directors, finance teams and investor relations professionals.
About UK Private Capital
UK Private Capital is the industry body and public policy advocate for the private equity (PE), venture capital (VC) and private credit ecosystem in the UK. With a membership of 600 firms, we represent UK-based private capital firms, as well as their professional advisers and a large base of UK and global investors. The private equity, venture capital and private credit industry has a vital role to play in driving national and regional growth. Currently over 13,000 companies, employing more than 2.5 million people, are backed by private capital investment in the UK.
