Key Takeaways
- • The UK government has engaged seven major private equity firms—including Hg, CD&R, General Atlantic, CVC, EQT, Elliott Management, and Clayton—over the past two months to discuss strategies for revitalizing London IPO activity and attracting portfolio company exits to the London Stock Exchange.
- • Only seven UK companies have completed IPOs in 2026 to date, reflecting a prolonged decline in London public market activity as businesses increasingly pursue overseas listings and takeovers rather than domestic flotations.
- • Multiple sponsor-backed companies are positioned as potential London listing candidates in 2026-2027, including EQT-backed veterinary group IVC Evidensia, cyber insurance specialist CFC, Elliott Management-owned Waterstones (evaluating London and New York listings), General Atlantic-backed Gymshark, and Hg-backed software company Visma.
- • Private equity firms view IPOs as a critical exit route, but London has lost competitive positioning relative to other global exchanges, creating a structural challenge for both sponsors and the UK capital markets ecosystem.
- • Government initiatives aim to restore confidence in London's public markets through direct engagement with institutional capital providers, addressing regulatory, structural, and market perception barriers that have driven capital and listings abroad.
Summary
The UK government has undertaken formal discussions with leading private equity sponsors to reverse a multi-year decline in London IPO activity and arrest the outflow of listed businesses to overseas markets. According to the Financial Times, ministers and Treasury officials from Downing Street have met with Hg, Clayton, Dubilier & Rice, General Atlantic, CVC, EQT, and Elliott Management over the past two months to explore structural and strategic approaches to making the London Stock Exchange a more competitive exit venue for portfolio companies.
The urgency of these talks reflects the severity of the challenge. Only seven companies have listed on London exchanges in 2026 to date, a figure that underscores the persistent weakness in UK public markets. Simultaneously, the UK equity market has contracted as established listed companies pursue overseas listings or accept takeover offers, reducing the overall investable universe and market depth available to institutional investors.
For private equity sponsors, IPOs remain a strategically important exit mechanism, but London's ability to attract marquee flotations has eroded significantly. Multiple high-profile sponsor-backed candidates are currently evaluating public listings, creating both a test case and an opportunity for government interventions. These potential listings include IVC Evidensia (EQT-backed veterinary services), cyber insurance specialist CFC, Elliott Management-owned Waterstones (which is simultaneously considering New York as a venue), General Atlantic-backed athletic apparel company Gymshark, and Hg-backed software company Visma, which had previously been positioned as a flagship London IPO candidate before market conditions delayed those plans.
The government's direct engagement with PE sponsors signals recognition that reversing the IPO drought requires more than passive market conditions; it demands active coordination between policymakers and the institutions that drive capital allocation and exit timing decisions. The talks implicitly acknowledge that regulatory, structural, or perception-based barriers are deterring sponsors from pursuing London listings, and that targeted interventions may be necessary to restore competitive positioning relative to New York, Singapore, and other rival exchanges.
The urgency of these talks reflects the severity of the challenge. Only seven companies have listed on London exchanges in 2026 to date, a figure that underscores the persistent weakness in UK public markets. Simultaneously, the UK equity market has contracted as established listed companies pursue overseas listings or accept takeover offers, reducing the overall investable universe and market depth available to institutional investors.
For private equity sponsors, IPOs remain a strategically important exit mechanism, but London's ability to attract marquee flotations has eroded significantly. Multiple high-profile sponsor-backed candidates are currently evaluating public listings, creating both a test case and an opportunity for government interventions. These potential listings include IVC Evidensia (EQT-backed veterinary services), cyber insurance specialist CFC, Elliott Management-owned Waterstones (which is simultaneously considering New York as a venue), General Atlantic-backed athletic apparel company Gymshark, and Hg-backed software company Visma, which had previously been positioned as a flagship London IPO candidate before market conditions delayed those plans.
The government's direct engagement with PE sponsors signals recognition that reversing the IPO drought requires more than passive market conditions; it demands active coordination between policymakers and the institutions that drive capital allocation and exit timing decisions. The talks implicitly acknowledge that regulatory, structural, or perception-based barriers are deterring sponsors from pursuing London listings, and that targeted interventions may be necessary to restore competitive positioning relative to New York, Singapore, and other rival exchanges.
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