Home / Business and Economy / UK PE Sees Surge in Growth Fund Focus
UK PE Sees Surge in Growth Fund Focus
13 Aug
Summary
- UK growth fund fundraising reached £2.6 billion in H1 2026.
- Growth funds now represent 22.2% of all UK PE capital raised.
- Overall UK PE capital raised is projected to be decade low.
UK private equity fundraising saw a notable increase in growth funds during the first half of 2026. These funds raised £2.6 billion, constituting 22.2% of the total UK PE capital, the highest proportion since 2021. This trend suggests limited partners (LPs) are seeking distinct risk-return profiles due to liquidity challenges.
Growth funds also made up 26.7% of all 15 PE fund closes in the period, nearly doubling last year's share. Notable closures include Apis Partners' Fund III, raising $1.23 billion, and Generation Investment Management's Sustainable Private Equity Fund II, surpassing $1 billion. These successes highlight investor appetite for strategies beyond traditional buyouts.
Despite the growth in specific fund types, overall UK PE fundraising is experiencing a downturn. Only £11.7 billion was raised across 15 funds in the first six months of 2026. At the current pace, the year's total capital raised is projected to be the lowest in the past decade, influenced by muted exits and constrained LP returns.
