The value of acquisitions of UK companies by US private equity funds increased by 53% last year to £14.2 billion, a study has suggested.
The relatively depressed valuations of UK companies compared with others in Europe has made them look good value for US-based buyers, said law firm Mayer Brown.
Acquisitions by Chinese private equity funds reached £515 million last year, up from "negligible" value in the previous year, it was indicated.
Brexit and pre-election uncertainty meant UK shares went through a significant period of underperformance after August 2019 compared with European listed companies, said the report.
The FTSE 100 has risen by 4% over the last year, whilst the FT EuroFirst 300 Index went up by 15%, according to the law firm's research.
Mayer Brown said the period of depressed valuations relative to European companies could continue as negotiations over the UK's trade deal with the EU rumble on.
Perry Yam of Mayer Brown said: "There are still plenty of buying opportunities in the UK for private equity funds. The clearing of the political uncertainty during 2019 may encourage EU trade buyers back into the UK market although this is yet to be proven."
