Key facts
- The UK government is engaging with private equity firms to boost London IPOs.
- Companies are leaving the London Stock Exchange at a faster rate than new ones are arriving.
- Private equity-backed IPOs raised $62.1 billion globally in 2025, a 53% increase from 2024.
- London has not captured a significant share of global private equity IPO flows.
- UK companies often achieve higher valuations on US exchanges compared to London.
- Structural disadvantages for London include pension fund allocation patterns and index fund mechanics.
The UK government is actively seeking the support of private equity leaders to address a persistent decline in listings on the London Stock Exchange. Downing Street and the Treasury have been holding discussions with major buyout firms, urging them to consider London for listing their portfolio companies instead of opting for New York or remaining private.
The post-Brexit era has been characterized by a significant slowdown in the IPO market, with companies exiting the London Stock Exchange at a higher rate than new entrants. While IPO activity saw a slight increase in the first quarter of 2026 compared to the same period in 2025, global uncertainties such as trade tensions and interest rate policies continue to deter prospective issuers.
Globally, private equity-backed IPOs raised $62.1 billion in 2025, a substantial rise from $40.6 billion in 2024, marking a 53% increase. However, London has struggled to attract a significant portion of this capital flow. To counter this, reforms have been implemented or advanced, including easing requirements for related-party transactions and simplifying shareholder approval processes for major deals.
A key deterrent for London listings remains the valuation discount compared to US exchanges, where companies can often achieve higher multiples. This structural disadvantage is attributed to factors such as pension fund allocation patterns, index fund mechanics, and the sheer size and liquidity of US equity markets. Investors are monitoring whether specific private equity-backed companies will announce plans to list in London in the coming quarters.