- Fundraisings in 2021 were up 78% on 2020 and 70% on 2019, according to new analysis from
- The value of acquisitions amongst privately-owned professional services businesses more than tripled last year, driven by Q4, which was the first £1bn+ quarterly period since pre-pandemic
- External capital increasing vs partner capital
- Multidisciplinary and consultancy models are becoming more prevalent
Analysis1 by
The growth in acquisition activity was driven by a strong final quarter, where acquisitions reached more than £1bn for the first time since before the pandemic, totalling £1.36bn in Q4 2021. The previous £1bn+ quarter was in Q4 2019 when deals collectively worth £1.2bn took place.
Acquisition activity by volume of deals was also well ahead of previous years, with 403 recorded across the year at an average size of £7.4m. This volume is 54% higher than 2020 (261 deals) and 36% higher than 2019 (296).
Last year saw £16.1bn worth of external capital flowing into private professional services businesses through fundraisings compared to just £9.1bn in 2020 and £9.5bn in 2019. The average size of an individual fundraise increased significantly last year, at an average of £4.9m, compared to just under £3m in 2020 and 2019.
"We fully expect the sector to remain highly active in the coming years, with firms seeking private external capital and also increasingly turning to the public equity markets as they see the value in having a tap of external capital they can turn on to invest."
-ENDS-
Media contacts:
arden@secnewgate.co.uk
Notes to editors
1 Arden analysis of data from Beauhurst, a data platform that tracks the
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