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AI investment and government support shape a mixed Q2 for UK private markets
UK private markets showed mixed momentum in Q2 2026. VC activity remained resilient, supported by another wave of AI megadeals led by Isomorphic Labs, while fundraising continued to recover despite a weaker exit environment. PE rebounded from a softer start to the year, driven by large buyouts, although fundraising remained subdued. Beyond dealmaking, government policy is increasingly centred on AI, with new commitments to computing infrastructure and semiconductor investment to strengthen the UK’s long-term competitiveness. Overall, capital continues to concentrate in AI and larger transactions, while macroeconomic uncertainty and weaker liquidity remain key constraints.
| Market overview | 2 |
| Commentary | 3 |
| City comparison | 4 |
| Private markets | 5 |
| VC deal activity | 7 |
| VC exit activity | 9 |
| VC fundraising activity | 10 |
| PE deal activity | 11 |
| PE exit activity | 13 |
| PE fundraising activity | 14 |
| Corporate acquisition activity | 15 |
| Equity markets valuations | 16 |