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PE growth’s share of UK fundraising is projected to reach its highest level since 2021, a sign that LPs are seeking a different risk-and-return profile amid liquidity constraints.
According to PitchBook’s 2026 UK Private Capital Breakdown, growth funds raised £2.6 billion (about $3.5 billion), accounting for 22.2% of all UK PE capital raised in the first half of this year, up from just 2.8% in 2025.
Growth funds also represented 26.7% of all 15 PE fund closes, almost double their 14.5% share last year.
The largest UK growth fund to close in H1 was Apis Partners’ Fund III, comprising Apis Global Growth Fund III and Apis Growth Markets Fund III, which raised $1.23 billion in May. It closed 23% above target and more than doubled its predecessor. Fund III targets tech-enabled financial infrastructure and services companies across Europe and growth markets.
Generation Investment Management also raised more than $1 billion in June with the close of Sustainable Private Equity Fund II and related co-investment vehicles.
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According to the Breakdown report, LPs are increasingly favouring strategies that offer a distinct risk-return proposition relative to traditional buyouts.
Whether that tilt will hold depends on the timing of several open buyout mega-funds in the market, including Permira IX, which is targeting around €17 billion (around $20 billion), Bridgepoint Europe VIII, which is aiming for €7.5 billion, and PSG Europe III, which has a goal of €3.3 billion.
UK PE firms only raised a mere £11.7 billion across 15 funds in the first six months of 2026. At the current rate, the total capital raised for the year will be the lowest in the last decade.
With exits still muted and returns to LPs constrained, allocators have less fresh capital to redeploy and have grown more cautious about committing to new funds, contributing to a broader global pullback in fundraising.
Correction: An earlier version of this article stated that Permira IX’s target fund size was €20 billion. The target fund size is €17 billion. (Aug. 14, 2026)
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This article originally appeared on PitchBook News
