PitchBook's Q2 2026 UK Market Snapshot reveals resilient VC activity driven by AI megadeals, a PE rebound, and growing government focus on AI infrastructure.
UK private markets experienced a mixed second quarter in 2026, according to PitchBook's latest UK Market Snapshot. Venture capital activity remained resilient, buoyed by another wave of AI megadeals led by Isomorphic Labs, while fundraising continued its recovery despite a weaker exit environment.
Private equity rebounded from a softer start to the year, driven by large buyouts, although fundraising remained subdued. Beyond dealmaking, government policy is increasingly centred on artificial intelligence, with new commitments to computing infrastructure and semiconductor investment aimed at strengthening the UK's long-term competitiveness.
Overall, capital continues to concentrate in AI and larger transactions, while macroeconomic uncertainty and weaker liquidity remain key constraints. The snapshot covers VC and PE deal activity, exits, fundraising, corporate acquisitions, and equity market valuations across the UK.