Private capital invests £465 million in Yorkshire and the Humber in 2025

New research shows that investment by private equity and venture capital firms into businesses in Yorkshire and the Humber was £465 million in 2025.

The report, Private Capital in Yorkshire and the Humber 2026, which will be launched by UK Private Capital at an event taking place in Leeds today, highlights the industry’s importance to the region’s economy. Although investment last year is lower than the £1.3 billion invested in 2024, the report underscores the strength of long‑term regional investment, totalling £7.1 billion over the past five years.

Private equity and venture capital firms currently back 533 businesses across Yorkshire and the Humber, supporting over 162,000 jobs. Private equity typically invests in established businesses to help accelerate growth and improve performance, while venture capital provides funding to earlier-stage, high-growth companies to help them scale up. Businesses backed by the industry contribute £10.1 billion to the region’s GDP annually.
 

Supporting business growth trajectory

Analysis conducted by Henham Strategy for the report, shows that businesses backed by private capital in Yorkshire and the Humber are more likely to deliver sustained growth, internationalise and innovate than the wider business population:

• Yorkshire companies that receive private capital backing are 20% more likely to also deliver sustained annualised revenue growth above 10% per year than firms without private capital backing.

• Venture-backed firms are more outward looking. Yorkshire VC-backed businesses are 10% more likely to also be internationalised than those not backed by VCs, which could indicate earlier access to export markets and the investor networks that can help businesses expand overseas.
• Innovative businesses often seek to protect and commercialise their intellectual property. Yorkshire venture-backed firms are also 3x more likely to file patents than businesses not-backed by the industry.
   

Yorkshire and the Humber’s vibrant spinout ecosystem

The report provides an in-depth look at Yorkshire and the Humber’s spinout ecosystem - companies created based on intellectual property generated through university research. Data provided by Beauhurst for the report shows that Yorkshire and the Humber boasts 124 active spinouts.

The University of Sheffield, University of Leeds and University of York are responsible for the lion’s share of spinouts in the region, helping to generate investable businesses in deep tech, engineering and data-led innovation. The majority of spinouts within the region are located in Sheffield, Leeds and York, with the rest spread across Yorkshire and the Humber’s local authorities.
 

The report will be launched at the Yorkshire and North East Invest Forum, which brings together investors from leading private equity and venture capital firms, local institutional investors, policymakers, and portfolio companies to explore Yorkshire’s growing strengths, emerging opportunities and strategic priorities.

The report makes several recommendations to both national and regional policymakers about how the impact of private capital can be maximised across the region. This includes calling on:

• UK Government to scale programmes such as Innovate UK’s Investor Partnerships, Growth Catalyst initiatives and Knowledge Transfer Partnerships that help spinouts and innovation-led businesses access capital.
• The British Business Bank to ensure it catalyses competitive investment ecosystems across the UK, both through its regional angel funds, regional funds and wider programmes.
• UK Government seek to further improve regional skills infrastructure, in partnership with industry and Skills England.
• Combined authorities and local leaders to provide clearer investment signals and improve planning and infrastructure conditions that support long-term growth.

“Yorkshire and the Humber has a strong and increasingly diverse population of businesses supported by private capital. From backing established businesses through buyouts to supporting innovative start-ups and scale-ups through venture capital, the industry is helping companies across the region grow, create jobs and contribute more to the economy.

“The region has real strengths in its business base, its universities and its growing spinout ecosystem. With the right policy and regulatory environment, private capital can play an even greater role in helping Yorkshire and the Humber build on those strengths and support the next generation of high-growth companies.”

Michael Moore

Chief Executive, UK Private Capital

“With private capital supporting over 500 companies in Yorkshire and the Humber and helping to contribute more than £10bn to GDP each year, this report demonstrates the already active and significant role such investment is playing in shaping and driving economic growth and prosperity in the region. But there remains plenty of untapped potential.

“By working collectively and collaboratively, private investors, public sector stakeholders and professional advisors can continue to unlock new pathways for innovation and deliver the strong regional investment that remains the bedrock of sustainable economic growth and development.”

Dan O’Connell

M&A Practice Lead – North, Gallagher

Notes to Editors:  

A full copy of the embargoed report is available here.

For further information, please contact:  
UK Private Capital Press Office 
Email: [email protected]
 

Background:

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.