'There is much to celebrate': Private capital investment in Northern Ireland surges to £384million, new report reveals

Private equity and venture capital funding into Northern Irish businesses quadrupled in 2025, supporting thousands of jobs and driving growth across the region’s innovation economy.

Investment by private equity and venture capital firms into Northern Irish businesses surged to £384 million in 2025, according to new research highlighting the growing role of private capital in the local economy.

The report, Private Capital in Northern Ireland 2026, launched in Belfast by industry body UK Private Capital, found investment increased more than four-fold from £94 million in 2024.

Over the past five years, total private capital investment in Northern Ireland has reached almost £1 billion (£943 million), with 186 businesses currently backed by private equity and venture capital firms.

Those businesses support more than 47,000 jobs and contribute an estimated £3 billion annually to Northern Ireland’s GDP, the report found.

Private equity firms typically invest in established businesses to accelerate growth and improve performance, while venture capital supports earlier-stage and high-growth companies as they scale.

Analysis conducted by Henham Strategy for the report suggested companies receiving private capital backing are significantly more likely to achieve sustained growth, expand internationally and invest in innovation.

Northern Irish firms backed by private capital were found to be 30% more likely to achieve annual revenue growth above 10%, while venture-backed businesses were also more likely to export and file patents.

The report also highlighted Northern Ireland’s growing spinout ecosystem, with 69 active spinout companies identified across the region, many originating from Queen’s University Belfast and Ulster University.

Most spinouts are based in Belfast (47), although businesses are also emerging across several council areas including Derry City and Strabane, Mid and East Antrim and Causeway Coast and Glens.

The findings were unveiled at the Northern Ireland Invest Forum, bringing together investors, policymakers and businesses to discuss growth opportunities and investment priorities.

UK Private Capital chief executive Michael Moore said the figures demonstrated the increasing importance of private investment to Northern Ireland’s economy.

Michael Moore, chief executive of UK Private Capital, said: “Private capital is playing an increasingly important role in Northern Ireland’s economy, backing established businesses through buyouts while venture capital firms support a growing cohort of start-ups and scale-ups.

“This year, there is much to celebrate about the scale of investment into Northern Irish businesses. However, with a more supportive policy and regulatory environment, the industry can play an even bigger role in the economy and help to close the productivity gap with other parts of the United Kingdom.”

Alistair Lester, CEO for Private Equity and M&A, EMEA at Gallagher, added: “This report showcases the unique strengths of Northern Ireland’s private capital investment story. As growth accelerates across core sectors such as technology, manufacturing, hospitality, and infrastructure, our focus must remain on building long-term confidence and capability.

“Strong regional investment remains the cornerstone of creating long-term sustainable economic growth, and private capital the catalyst for powerful partnership. As an organisation focused on empowering enterprises, enabling growth, and enhancing resilience – through the provision of trusted advice and tailored insurance, benefits and risk management solutions – we are immensely proud to partner with UK Private Capital on its Nationwide Invest Series.