Raising Private Equity in 2026: A UK Scaleup Playbook

Private equity isn’t “just funding”. It’s a forced upgrade to how your company is run—reporting, governance, leadership depth, and clarity of strategy. If you’re not ready for that, the money won’t help. If you are ready, PE can compress years of growth into a much shorter window.

This matters in the Climate Change & Net Zero Transition economy because many UK businesses now face a weird combination: huge demand signals (retrofit, grid flexibility, sustainable supply chains, low-carbon transport) and stubborn execution constraints (capex needs, long sales cycles, compliance). PE can be a strong fit when you’ve proved the model and need capital plus operational support to scale.

The source article frames PE as a “holy grail” for rapid growth and highlights something founders often underestimate: the investor is buying a five-year value-creation plan, not your pitch deck. I agree. The reality? The most bankable “marketing” for a PE raise is evidence—repeatable revenue, improving margins, and a team that can run the plan without heroics.

Private equity fundraising: what investors actually buy

Private equity firms buy a clear route to value creation inside 3–7 years. The standard model is straightforward: a PE fund raises money from institutional investors, buys a meaningful (often majority) stake, backs management to grow (organic and/or acquisitions), then exits via sale or listing.

For UK founders and scaleup leaders, the trade is equally clear:

• You get: meaningful growth capital, strategic support, hiring power, M&A capability, and credibility with banks and large customers.
• You give up: a slice of upside, some control, and the right to “wing it” on reporting, governance, and performance discipline.

A phrase I use with teams: “PE is a partnership, but it’s not a casual one.” You’ll be working with these people through board cycles, hiring decisions, pricing debates, and (inevitably) a couple of tough quarters.

PE vs VC vs project finance (why this matters for net zero)

If you’re building in climate and net zero, choosing the wrong capital can set you back years.

• Venture capital often fits earlier, when you’re still proving product-market fit and can grow fast with losses.
• Private equity generally fits when you have stable revenues, credible forecasts, and levers to pull (pricing, efficiency, expansion, acquisitions).
• Project finance / infrastructure capital fits asset-heavy deployments (solar, storage, charging networks) where cash flows can be contracted.

Many net-zero businesses evolve across these. A typical path is VC (prove it) → PE (scale it) → project finance (deploy assets) or strategic sale.

The 2025–2026 UK PE landscape (and what it means for your process)

Deal appetite is selective, not dead. The source highlights KPMG reporting that the UK private equity rebound of 2024 stalled in H1 2025, with activity dipping to the lowest level since 2020, amid geopolitical uncertainty and tariffs concerns. At the same time, investor interest remains strong in sectors such as business services, healthcare, and TMT.

Here’s how that translates into practical fundraising realities for 2026:

1. Timelines are longer. Diligence takes more cycles, and committees want more downside analysis.
2. Quality assets still attract competition. If your numbers and narrative are tight, you can still create a competitive process.
3. Leverage sensitivity is higher. In more volatile markets, debt-heavy structures can become uncomfortable quickly—especially for businesses exposed to energy prices, supply chain swings, or policy shifts.

The source also mentions massive “dry powder” (unspent PE capital). Whether or not you accept any headline figure at face value, the takeaway is true: capital exists, but it’s picky. Your job is to be the deal that feels de-risked.

Brexit isn’t the headline—but cross-border proof matters

The article argues PE activity in the UK has been resilient post-referendum, while acknowledging strain in certain consumer-facing areas. For net-zero scaleups, I’ve found the key isn’t debating Brexit; it’s demonstrating you can sell and deliver across borders despite friction.

If you claim European expansion is the plan, PE will expect evidence:

• a signed pilot
• a distribution partner
• regulatory pathway clarity
• or an acquisition target pipeline

How to position your scaleup for a private equity raise

You raise PE by showing repeatability, not by describing ambition. Most teams over-invest in the story and under-invest in “deal readiness”. That’s backwards.

What PE wants to see in your numbers (especially in climate)

You don’t need perfect metrics, but you do need coherent ones.

• Unit economics that improve with scale (gross margin stability, service delivery efficiency, churn control)
• Cohort clarity (what happens to customers 6–24 months after acquisition)
• Working capital control (net-zero markets can be inventory- and capex-hungry)
• A forecast you can defend with assumptions tied to pipeline reality, not hope

If your business touches regulated markets (energy, transport, construction), also expect deeper scrutiny on:

• compliance and certification
• supply chain resilience
• subsidy/policy exposure
• carbon accounting claims (avoid “hand-wavy” ESG slides)

The management team is part of the product

The source repeatedly implies something founders sometimes miss: the management team keeps running day to day; PE supports and steers.

So PE will test whether you have:

• a CFO who can run a tight process and investor reporting
• a revenue leader who understands long sales cycles and enterprise procurement
• operational leadership that can scale delivery without quality collapse

If you don’t have that bench, say it plainly and make it part of the investment thesis: “We’re raising to build the team that can scale safely.”

Your marketing is your investor positioning

This is where the “Startup Marketing United Kingdom” angle matters: fundraising is a marketing funnel.

• Your category story frames why you exist (e.g., “decarbonising school meals” or “reducing retrofit friction for landlords”).
• Your proof points remove risk (renewal rates, reference customers, delivery SLAs).
• Your brand credibility reduces perceived execution risk.

Investor-grade marketing assets that actually help:

• a one-page “numbers first” investment snapshot
• a customer proof pack (case studies, quantified outcomes, reference list)
• a simple market map (who buys, who influences, who blocks)
• a clear value-creation plan (3–5 levers, owners, timing, KPI impact)

Choosing the right PE partner (fit beats fame)

The wrong PE partner costs you years. The right one accelerates everything.

The source makes a strong point about competition among PE investors allowing founders to choose based on culture and value-add. Take advantage of that. Run partner selection like you’d hire a senior exec.

Due diligence goes both ways: your PE “fit checklist”

Ask questions that reveal behaviour, not promises:

1. How do you behave when a quarter goes sideways? Ask for a specific example.
2. What’s your default stance on leverage and risk? Get it on record.
3. Who will actually be on our board, and how many boards do they sit on? Time matters.
4. What functional support do you provide? Hiring, pricing, procurement, M&A integration—be specific.
5. What’s your exit bias? Secondary sale vs trade buyer vs IPO aspirations.

If you’re a net-zero business, add:

• experience with regulated markets
• ability to finance capex without starving working capital
• realism about policy risk (and how they underwrite it)

A deal that looks great on valuation but breaks the relationship will feel expensive later.

What real PE-backed growth looks like (3 UK examples)

The best parts of the source are the operator stories. They show what PE money is for.

Innovate: scaling a disruptive model with impact alignment

Innovate (specialist school catering) describes building a new model that improved take-up dramatically and then raising £8.5m for a majority stake (via Bridges Fund Management) to scale systems, leadership, and contracts.

Two lessons founders should copy:

• Chemistry before price. They focused early conversations on vision and values.
• Use PE to professionalise. Not just growth spend—governance and systems too.

This is very “net zero transition” adjacent: the market increasingly rewards providers who can prove health, waste reduction, sustainable sourcing, and measurable outcomes—not just low cost.

ZyroFisher: PE as an expansion platform

ZyroFisher used PE backing to pursue expansion into France, with the CEO emphasising non-financial resources: contacts, know-how, and platform.

The practical takeaway is blunt: your PE investor should increase your strategic options—new geographies, acquisitions, partnerships—without forcing you to bet the company.

David Phillips: the real value comes after the close

David Phillips raised £8m in a process that took around five months, then used investment to expand (including acquisitions) and professionalise operations—inventory, IT systems, processes, and sales/marketing.

One line that matters for any scaling business: “The real change comes after the investment.” Build your post-deal plan before you sign, not after the champagne.

A practical 90-day plan to get PE-ready

PE readiness is mostly execution hygiene. Here’s a 90-day sprint I’ve seen work for UK scaleups.

Days 1–30: tighten the story and the data

• Build a KPI pack (monthly recurring revenue or revenue run-rate, gross margin, CAC payback, churn/retention, working capital, cash runway)
• Create a defensible forecast with 3 scenarios (base/downside/upside)
• Write a 1-page equity story: problem, solution, proof, growth levers, why now

Days 31–60: build the deal room and reduce risk

• Prepare a data room: financials, customer contracts, cap table, IP, compliance
• Document operational processes (delivery, QA, supplier management)
• Line up references: 5 customers who will take investor calls

Days 61–90: run a controlled process

• Shortlist PE firms by sector fit and cheque size
• Use an adviser if you need process control and access (many teams do)
• Run management presentations with a consistent narrative
• Compare term sheets beyond valuation: control, leverage, board rights, incentives

If you’re in the climate and net zero space, add a claims audit: make sure sustainability and carbon statements are measurable and legally safe.

The stance I’d take: raise PE when you’re ready to scale responsibly

Private equity can be a strong funding strategy for UK startups and scaleups—but it’s not for “we’re nearly there” businesses. It’s for companies with clear traction and a plan that survives scrutiny.

If you’re building in the net-zero transition, PE can also help you prove the hard thing: not that your mission is worthy, but that your business is durable—through supply chain shocks, regulation changes, and long procurement cycles.

Your next step is simple: decide what you want PE for (growth, acquisitions, systems, international expansion), and then make your business easy to underwrite.

What would change in your company this quarter if you acted like you already had an investor on the board—and you wanted to be proud of the numbers?