There is expected to be more private equity (PE) investment in the UK travel sector in the coming months after a lull in the first half of the year due to Brexit uncertainty, according to a major business advisory firm.
While a couple of notable business deals illustrate that the travel sector remains an attractive prospect for many PE investors, few deals have been signed.
RSM observed that PE investment in travel was limited during the first six months, which was largely down to Brexit, “impacting the flow of attractive deal opportunities,” according to Tim Robinson, RSM’s associate director.
However a handful of new deals suggest that PE firms are still optimistic about growth opportunities within the UK travel sector, which should continue to rise until the end of the year.
Examples include ECI Partners’ acquisition of The Travel Chapter and Bregal Freshstream’s investment in Away Resorts Business advisory firm for an undisclosed fee. Both secondary buyouts that underline PE’s continued interest in travel. Robinson also noted that fundraising within the UK private equity market has continued to flourish, which has resulted in levels of “dry powder” continuing to break records. He added that other firms have targeted bolt-on acquisitions abroad.