Private Equity Talent Outlook: Q3 2025 Reflections & Q4 Priorities

Written By Liam Grier

Deal Momentum and the New Leadership Challenge

After a subdued start to the year, the UK private equity market has reignited. Optimism is returning, capital deployment has accelerated, and transformation agendas are once again central to portfolio value creation. But as deal activity rebounds, expectations of leadership talent are evolving fast. Investors now want operators who can prove value creation, not only promise it.

Q3 Review: Market Confidence Rebuilds as Deal Flow Returns

According to PitchBook (Q3 2025), UK private equity deal activity strengthened sharply through the first half of the year. Total deal value reached £55.7 billion, down 5.3 per cent year-on-year, while deal count rose 19.2 per cent to 1,060 transactions.

This rebound has been driven by monetary easing from the Bank of England and clearer policy direction on private capital’s role in growth. “The UK regulatory landscape is open for business, making it easier for deals to be closed,” said Nicolas Moura, Senior EMEA Private Capital Analyst at PitchBook.

High-profile transactions such as Apollo-backed Athora’s £5.7 billion acquisition of Pension Insurance Corporation and KKR’s £4.8 billion takeover of Spectris reflect renewed appetite for scale and long-term investment.

Buyouts Lead the Recovery, US Capital Builds Influence

Buyouts accounted for 25.7 per cent of UK deal count and the majority of total deal value for the first time since 2021 (PitchBook, Q3 2025). Improved access to debt and more realistic seller valuations helped drive activity.

While the mid-market remains the core of UK private equity, mega-deals are lifting average transaction sizes and signalling a renewed focus on quality over quantity.

US investors are also taking a more bullish stance. Their share of UK deal value has risen from 20.5 per cent to 31.3 per cent in 2025 as firms seek growth and relative value overseas. This influx brings sharper expectations, faster deal cycles, and greater pressure on portfolio leadership to deliver commercial performance.

Continuation Funds and Exit Backlogs: The Structural Constraint

Behind the strong deal flow lies a growing challenge — exits.

PitchBook (H1 2025) reports UK private equity exits down 12 per cent year-on-year, following a 50 per cent decline in 2024. Total exit value has fallen from over £80 billion in 2021–22 to around £20 billion this year. IPO activity remains limited despite the FTSE All-Share rising 12 per cent year-to-date.

To release pressure, firms are increasingly using continuation funds, transferring assets between vehicles. These reached a record $41 billion globally in H1 2025, nearly 20 per cent of all private equity sales and 60 per cent higher than in 2024 (Jefferies, 2025). The sale of David Lloyd from one TDR fund to another, with CVC participation, exemplifies this shift.

However, these transactions recycle capital rather than free it. More than 2,700 UK companies now await exit (PitchBook, H1 2025). IPO candidates are also ageing, with the median age up to 14 years from 8 in 2022 (Apollo Research, 2025). While Shawbrook’s planned £2 billion IPO hints at progress, London listings remain scarce.

As the Financial Times observed in September 2025, “the pipes are blocked.” Continuation funds and delayed listings are defining features of this cycle.

Valuations Stabilise, Activity Persists

Despite liquidity constraints, private equity remains active. PitchBook’s Q2 2025 Middle Market Report shows 978 closed deals, up 39 per cent year-on-year, putting private equity on track for its second most active year on record.

Valuations have stabilised near pre-pandemic norms, with global average EV/EBITDA multiples at 11.3x and buyouts averaging 12.9x. This has narrowed bid-ask spreads, improved certainty, and strengthened the outlook for 2026.

McKinsey’s Global Private Markets Report 2025 echoes this cautious optimism. While fundraising is at its lowest level since 2016, capital deployment is accelerating as limited partners reaffirm confidence in private equity’s long-term resilience.

What It Means for Talent: Leadership Under Pressure

The combination of rising deal flow, limited exits, and increasing US influence is reshaping expectations of leadership inside private equity-backed businesses.

Transformation agendas are now broader and faster, shifting from cost control to sustainable growth. Investors are prioritising strategic operators who can execute decisively and deliver measurable impact.

1. Cross-Functional Commercial Operators
Leaders who can drive revenue through sales, marketing, pricing, and go-to-market strategy are most in demand. Investors want builders of commercial engines, not caretakers.

2. Builders Who Execute
Executional leadership is critical. Portfolio transformation depends on individuals who can turn strategy into scalable growth, especially those experienced across product, finance, and strategy.

3. Structured, Data-Led Problem Solvers
Consultants and transformation specialists with analytical rigour and delivery capability remain highly valued. As data and AI become central to value creation, structured thinkers who can embed insight frameworks are essential.

4. Leaders with Proven Impact
Evidence of success now matters more than potential. Investors expect measurable outcomes such as revenue growth, margin expansion, and accelerated time-to-value.

5. Interim and Fractional Leaders as Strategic Levers
Interim and contract talent have become catalysts, not placeholders. Portfolio companies are using them to lead transformation, stabilise transitions, and test new models before committing to permanent hires.

Q4 2025 Outlook: Turning Complexity into Momentum

As we move into Q4, deal activity remains robust despite ongoing liquidity pressure. The firms that succeed will be those aligning investment ambition with equally rigorous talent strategies.

Key priorities for the months ahead:

  • Align talent and value creation plans: Build leadership teams that can deliver operational excellence and growth simultaneously.

  • Deepen domain expertise early: Engage specialists in data, ESG, or go-to-market strategy before transformation begins.

  • Leverage agile talent models: Use interim and fractional leaders to maintain speed and de-risk transitions.

  • Focus on measurable outcomes: Hire leaders who can demonstrate ROI and strengthen investor confidence.

  • Anticipate US-style expectations: Prepare for higher performance standards and faster delivery cycles as US capital deepens its presence in Europe.

Final Thoughts: From Value Creation to Value Proof

The message from Q3 is clear. The market has regained its energy, but with exits constrained and valuations steady, the pressure to deliver tangible value has never been higher.

For portfolio companies, the focus must shift from potential to proof, from strategy to execution. The firms that adapt will define the next cycle of outperformance.

At inicio talent, we partner with private equity funds and portfolio companies to meet that challenge. From interim operators and commercial builders to transformation specialists, we help investors turn strategic ambition into operational reality across the UK, Europe, and the US.

Create. Achieve. Partner.

Further Reading

Liam Grier
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Private Equity Talent Outlook: Q2 Reflections & H2 Priorities