The UK private equity market dipped in the final quarter of 2010, despite widespread optimism, according to the latest unquote” UK Watch, produced in association with Corbett Keeling.

While Q3 saw a surge in activity and a glut of very large deals, activity was more subdued as the winter set in.

Larger buyouts saw a fall in volume and value, with just three deals valued at over €150m in the UK during the final three months of the year. Overall, 2010 saw a considerable upturn in activity in this segment compared with a dire 2009, but still remains well below the heights seen in the middle years of the decade.

A similar picture emerged at the lower end of the market, with just 12 deals valued at less than €150m, totalling €340m. This was well below the other quarters in 2010, when smaller investments made a significant recovery.

However, despite the dip in activity in the final three months of the year, the picture is broadly positive, with a significant improvement across 2010 as a whole, and industry optimism for the year ahead.

Download the full version of the unquote" Watch Q4 2010 from our research centre.