The number and value of M&A deals by high net worth individuals and family offices climbed over the past year as they act as co-investors, and as US-based investors return to acquire UK companies.

The number of UK M&A deals undertaken by high net worth individual and family offices increased by 13 per cent in the past year, reaching 34 deals in 2024/25, up from 30 deals recorded in the previous year, according to new research from multinational law firm Pinsent Masons.

Over the same period, the total disclosed value of these deals also increased to £1.7 billion, up 277 per cent on the £450 million in deals recorded in the previous year, the research shows.

Sunjay Malhotra, partner at Pinsent Masons, believes that an increasing number of HNW individuals choose to lead or act as co-investors in M&A transactions so that they can acquire private assets without the management and performance fees incurred by investing in a private equity fund.

“Many of these high net worths 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 said. “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 UHNWs,” he added. “Some vendors can also prefer private individuals as bidders as they can offer a quicker due diligence process than an institution or corporate bidder.”

The involvement of millioinaires in driving such transactions is significant, and gives a twist to debates about whether the UK government's tax policies – such as the end of the resident non-domicile system and widening of inheritance taxes – might drive a cohort of HNW individuals from the country.

Special relationship?
Malhotra says the jump in M&A deals has also been driven by a surge of US-based investors returning to acquire UK companies. These investors traditionally have a higher risk tolerance than European HNWs and family offices.

“The high number of HNWs and family offices putting money on the table for UK companies is a very encouraging sign. It suggests that the UK continues to be innovative, producing companies of value that appeal to an international audience,” Malhotra said.

A number of investments made by HNWs and family offices were for UK sports and entertainment businesses. These include:

Friedkin Group, the family office of Dan Friedkin, acquired a majority stake in Everton Football Club in December 2024;

Ryan Reynolds and Rob McElhenney, co-owners of Wrexham football club, acquired UK brewers Wrexham Lager Beer in October 2024; and

Kuwaiti HNW Hussain AlSaeed acquired a majority stake in Bristol Rovers in August 2023.