Daniel Black
Will this be a boom year for M&A? That’s the prediction made by Tiina Lee, Citigroup’s UK boss, who says the deal pipeline is “the strongest that we’ve seen now for quite a number of years.”
That sentiment is being borne out in the market this week, with top stories including:
- CVC is to buy US credit manager Marathon Asset Management
- Spire Healthcare shares jump almost 20% on sale talks
- AUB Group agrees to acquire UK insurance platform
Thanks for reading, and connect with me on LinkedIn if you want to discuss how Ideals VDR can help with your next M&A deal.
Find out how dealmakers are using AI
Artificial intelligence has become a true deal accelerator. According to a new report from Ideals, 59% of dealmakers say increased speed and efficiency is AI’s leading benefit.
The research combines survey insights from more than 100 M&A professionals with profiles of leading dealmakers, revealing how AI has moved from promise to practical impact in M&A.
Deal Tracker
Our weekly roundup of all the confirmed M&A deals in the UK.
The rumour mill
- CVC to buy US credit manager Marathon Asset Management
- CVC nears €2.2bn deal for DSM-Firmenich’s animal health unit
- Bain, Blackstone among suitors for UK vitamin maker Vitabiotics
- Citigroup’s UK Head says deals pipeline is strongest for years
- BoE mulls sale of Wimbledon tennis qualifying ground
- St James’s Place breaks £220bn mark as new charges draw client questions
- Spire Healthcare shares jump almost 20% on sale talks with buyout groups
- Shell’s legal fight against Venture Global focuses on communication with engineer, court transcript shows
- Close Brothers nets £250m Tier 2 as outlook improves
- Travers Smith boss: ‘We don’t need a merger’
- McDermott’s London revenue jumps 53% following merger
- London buyout firm CapVest eyes Italian market amid private equity rush
- EAG Bioenergy borrows £25m to buy biogas projects in UK, Ireland
- Storegga puts Scottish hydrogen portfolio on the block
- Pollen Street signs deal to buy Tutman
- AUB Group agrees to acquire UK insurance platform
- Aegon UK review attracts reported buyer interest from insurers and investors
- JP Morgan acquires WealthOS to boost pensions offering
- The Possible Faces of a Rio Tinto-Glencore Deal
- UK politicians call for competition review of Netflix bid for Warner Bros
Industry news
- Tariffs, high interest rates drag down corporate solar funding in 2025
- Federal Reserve opts against interest rate cut despite Donald Trump pressure on Jerome Powell
Salaries and bonuses
- Deutsche Bank gently trimmed 45 people in Q4, while hiking pay
- Citi’s London MDs accepted lower salaries in return for faster vesting bonuses
- UBS bonuses are this Thursday. There are comings & goings before they’re announced
- KPMG UK partner pay jumps 11% following Swiss merger
- Citigroup hikes bonuses for London dealmakers by up to 15%
Job moves
- Auréa Group names Aparna Aiyar as new partner
- Mayfair Equity makes six promotions in investment team
- L&G appoints Proprium Capital Partners duo to co-head new real assets division
- UBS Asset Management UK head Nasreen Kasenally to exit
Market trends
How AI is reshaping dealmaking
It’s safe to say that AI in 2026 has moved beyond experimentation in dealmaking. New Ideals VDR research among more than 100 M&A professionals shows roughly two-thirds now use AI or automation tools in some capacity.
The top use cases include document review, deal sourcing, and financial modelling, while efficiency and speed rank as the dominant benefits. What AI delivers is compression of timelines, not reinventing the wheel.
However, the research also underscores the technology’s limitations. Improved accuracy and reduced errors ranked sixth among observed benefits at just 21%, while more than half of those surveyed flag lack of human judgment as AI’s biggest constraint.
UK venture capital fundraising collapses to decade low
According to PitchBook’s UK Market Snapshot, UK VC fundraising fell to £2.1bn in 2025, its lowest level in the last six years and an 81% decline from the 2021 peak of £11bn. Just 29 funds closed during the year, down from 153 in 2022.
The decline has been widespread: smaller funds under £100m now account for a larger portion of overall activity, whereas larger funds in the £250m to £1bn range, which dominated capital formation in 2021 and 2022, have essentially vanished from the market. Assets under management have held relatively steady at £81bn from £87bn since 2022, but dry powder has dropped to £17bn, the lowest since 2020.
The UK private equity market now holds nearly 2,800 portfolio companies, the highest level on record.
Downward trends in media and marketing M&A
Last year, Moore Kingston Smith recorded 301 mergers and acquisitions in UK media and marketing services, which is a 23% decrease from 2024. The decline accelerated to just 57 deals in Q4.
The report notes that macroeconomic stability is the key for 2026: falling inflation and further BoE rate cuts would improve financing conditions, while an increase in business asset disposal relief starting in April might accelerate exits.
Fundraising
IPOs
- Breakdown Cover Firm RAC Poised to Pick Banks for London IPO
- London Set to Test if its IPO Market Reforms Can Deliver Results – Bloomberg
