The number of mergers & acquisitions (M&A) undertaken by high net worth individuals (HNWI) and family offices rose by 13 per cent year-on-year in the UK in 2024/25, according to figures from Pinsent Masons.

Its research found that there were 34 M&A deals in 2024/25, up from 30 the previous year, as HNWIs and family offices chose to lead or act as co-investors, and US-based investors returned to acquire UK companies.

The total disclosed value of these transactions also increased over the same period, rising from £450m in 2023/24 to £1.7bn in 2024/25, a 277 per cent increase.

According to Pinsent Masons partner, Sunjay Malhotra, HNWIs were increasingly choosing to lead or act as co-investors in M&A deals in order to acquire private assets without the management and performance fees that come with investing through private equity funds.

“Many of these HNWs are entrepreneurs so they want to participate in the management decisions of the investee companies, which they would not get if they invested through a fund,” Malhotra continued.

“Whilst some of these deals are targeting trophy assets like football clubs or other sports brands the majority of these deals are very pragmatic, driven by a desire to diversify investment and increase exposure to private assets.

“There has been a general increase in investment in private assets amongst institutional investors, endowments and foundations, and now family offices and ultra HNWs.

“Some vendors can also prefer private individuals as bidders as they can offer a quicker due diligence process than an institution or corporate bidder.”

Malhotra added that the increase in M&A activity had also been driven by a rise in the number of US-based investors returning to acquire UK-based firms, with these investors typically having a higher risk tolerance than European HNWIs and family offices.

“The high number of HNWs and family offices putting money on the table for UK companies is a very encouraging sign,” Malhotra said.

“It suggests that the UK continues to be innovative, producing companies of value that appeal to an international audience.”

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