KPMG UK has released a series of reports detailing the UK's economic resilience, with a focus on private equity, fintech funding, and the critical need for AI skills development. The analysis reveals that while private equity deal volume in the UK fell by 10% to 1,751 transactions in 2025, the total value rose 3.5% to £176.6 billion, indicating a shift toward larger, more selective investments. The first half of the year saw higher volumes, while the latter half was dominated by bigger deals, reaching levels not seen since early 2021.
In fintech, the UK solidified its position as Europe's top investment destination in 2025, securing $10.96 billion—a 21% decrease from 2024 but still accounting for over a third of the EMEA region's total of $29.2 billion. Globally, fintech funding climbed to $116 billion across 4,719 deals. A key UK highlight was Revolut's $3 billion capital raise. The report notes that challenges like geopolitical tensions and high interest rates tempered activity, but improving regulations are fostering momentum. Corporate venture capital globally hit $29.7 billion, with digital assets attracting $19.1 billion.
Complementing these trends, KPMG emphasizes the urgent need to enhance AI skills, noting that 73% of UK residents lack AI training. The UK led Europe in venture capital in 2025 with over £16 billion across 1,900 deals. Initiatives to close the skills gap, such as AI training programs proposed by London's mayor and collaborations between businesses, governments, and universities, are seen as vital for maintaining the UK's venture capital appeal and driving future industry shifts.
Separately, a PitchBook Q1 2026 Analyst Note provides a nuanced view of the Asia-Pacific (APAC) AI venture landscape. The report indicates that AI funding is no longer driven by widespread enthusiasm but by calculated decisions emphasizing practicality, market viability, and deployment readiness. Capital is concentrating on the foundational elements of the AI ecosystem, particularly infrastructure and enterprise-oriented applications within sectors like manufacturing, finance, and healthcare.
The analysis breaks the AI value chain into three segments: the enabling stack (software and data infrastructure), applied industry verticals, and emerging downstream themes. Investments are steady in the enabling stack, while applied verticals with strong operational needs are seeing a rise in later-stage funding and corporate involvement. In contrast, consumer-facing AI and policy-influenced applications remain more exploratory and receive less capital. The report anticipates continued consolidation around proven AI segments, positioning APAC as a potential global leader in practical AI innovation.
