US investors set to take advantage of weakening sterling in new UK M&A wave

Private equity turns to listed bargains

Valeria Martinez
clock • 5 min read

A new wave of M&A activity is looming, as US-based private equity firms look to profit from a weakening sterling, which may carry both risks and opportunities for listed UK equities. 

Favourable regulatory conditions, a weaker pound and low valuations means investors are eyeing the divergence between the real underlying value of companies listed in the UK and their share prices.  According to business advisory firm Trachet, private equity firms have turned towards the UK as low valuations have produced "fertile ground" for acquisitions at a discounted price. Claire Trachet, the firm's CEO, said: "American investors are looking to capitalise on the weaker sterling, making companies now nearly 20% cheaper to buy in the UK - with tech and telecoms likely to be targete...

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