Private Equity in England and Denmark: A 2025 Outlook
By Martin Sandgaard, Head of European Operations, Sandgaard Capital
Private equity across Europe is entering a new chapter. After a turbulent few years, deal activity is slowly picking up, yet conditions vary widely between markets. England offers scale, depth, and liquidity, while Denmark provides stability, strong institutional support, and niche opportunities. For Sandgaard Capital, understanding these differences is central to our European strategy.
England / UK: Scale With Complexity
The UK private equity market remains one of the most active in Europe. Mid-market deal activity is recovering as valuation gaps narrow, with buy-and-build strategies and operational transformations leading the way. Yet competition is fierce, exits through IPOs remain challenging, and regulation around carried interest and alternative assets continues to evolve.
Sectors drawing the most attention include tech-enabled services, healthcare, energy transition, and consumer brands with digital reach. For us, the UK requires selectivity: targeting defensible, mid-market businesses where Sandgaard Capital’s operational expertise can create real value. Regional opportunities outside London are also becoming more attractive as investors look beyond the capital.
Denmark: Stability and Niche Plays
Denmark’s private equity market is quieter, with fewer large-scale transactions, but it offers unique strengths. Institutional investors—particularly pensions—remain strong backers of private equity, creating a stable funding base. Local firms such as Axcel and Polaris are active, with particular momentum in software, healthcare, and renewable energy.
The regulatory environment is predictable, digital infrastructure is advanced, and competition for deals is more measured compared to the UK. While deal volume is lower, Denmark is well-suited for disciplined investors seeking targeted opportunities, co-investments, and platforms that can scale across the Nordics.
Strategic Balance
England and Denmark present very different private equity profiles. England offers high liquidity, but with intense competition that demands strong conviction and operational edge. Denmark, by contrast, is more modest in scale yet less crowded, allowing disciplined investors to find value without the same bidding pressure.
Institutional capital is strong in both markets, but Denmark stands out with its exceptionally deep pension and insurance base, providing reliable support for private equity strategies. Regulatory conditions also diverge: the UK environment is more fluid, with ongoing discussions around carried interest and alternative investment rules, while Denmark remains predictable and stable.
Finally, sector opportunities differ in breadth. England offers wide-ranging plays across technology, healthcare, energy transition, and consumer sectors, while Denmark’s opportunities are more niche—particularly in software, healthcare, and renewables—yet well aligned with long-term growth themes.