UK Mid-Market Pulse: Q2 2026
UK Mid-Market Pulse Q2 2026
Valuation Multiples by Sector
The UK Mid-Market Pulse is North Star Partners' quarterly review of valuation multiples across the UK mid-market, drawn from over 250 listed companies with enterprise values between £20m and £300m. It tracks how public market multiples are moving by sector and sets out what those movements imply for private equity and private credit portfolio valuations. This post summarises the headline findings for Q2 2026.
Public market valuations rebounded broadly in Q2 2026, with 8 of 9 sectors re-rating upward quarter-on-quarter. Industrials & Manufacturing led at +11.0% QoQ, followed by Financial Services at +9.9% and Leisure & Hospitality at +9.8%. The Q1 sell-off had been driven by sentiment rather than fundamentals, namely fears of AI disruption in software and the onset of the Iran conflict, and those pressures eased through the quarter. Two structural themes supported the recovery: the re-rating of defence-related industrials after the UK Defence Investment Plan in June, and money flowing into AI-related hardware. Consumer Products & Retail was the only sector to fall, down 2.8%. The rebound should be read with caution, as multiples remain down year-on-year in 7 of 9 sectors and reflect improved sentiment more than any change in the underlying operating environment. Where Q1 created pressure to mark down, Q2 gives license to mark up, provided funds can document that higher marks reflect value in specific businesses rather than indiscriminate uplift.
| Sector | Adopted Multiple | Q2 '26 | Q1 '26 | QoQ Δ% |
|---|---|---|---|---|
| Best Performers | ||||
| Industrials & Manufacturing | EV/EBITDA | 7.9x | 7.1x | +11.0% |
| Financial Services | P/E | 13.4x | 12.2x | +9.9% |
| Leisure & Hospitality | EV/EBITDA | 9.8x | 9.0x | +9.8% |
| Worst Performers | ||||
| Consumer Products & Retail | EV/EBITDA | 6.3x | 6.5x | -2.8% |
| Media & Marketing | EV/EBITDA | 5.2x | 5.1x | +1.9% |
| Technology & Software | EV/Revenue | 2.3x | 2.2x | +4.6% |
| Sector | Adopted Multiple | Q2 '26 | Q1 '26 | Q2 '25 | QoQ Δ% | YoY Δ% |
|---|---|---|---|---|---|---|
| Materials & Industrials | ||||||
| Industrials & Manufacturing | EV/EBITDA | 7.9x | 7.1x | 8.4x | +11.0% | -5.7% |
| Building Products & Construction | EV/EBITDA | 6.4x | 6.1x | 8.4x | +5.8% | -23.4% |
| Professional Services | ||||||
| Business & Professional Services | EV/EBITDA | 6.2x | 5.9x | 7.2x | +5.8% | -13.5% |
| Consumer | ||||||
| Consumer Products & Retail | EV/EBITDA | 6.3x | 6.5x | 7.2x | -2.8% | -12.3% |
| Leisure & Hospitality | EV/EBITDA | 9.8x | 9.0x | 9.5x | +9.8% | +3.7% |
| Health Care | ||||||
| Healthcare | EV/EBITDA | 11.9x | 11.4x | 14.8x | +4.6% | -19.6% |
| Financials | ||||||
| Financial Services | P/E | 13.4x | 12.2x | 12.5x | +9.9% | +7.2% |
| Technology, Media, & Telecommunications | ||||||
| Technology & Software | EV/Revenue | 2.3x | 2.2x | 2.7x | +4.6% | -15.0% |
| Media & Marketing | EV/EBITDA | 5.2x | 5.1x | 7.2x | +1.9% | -26.8% |
The full UK Mid-Market Pulse Q1 2026 report, including sector commentary, sources and methodology, is available here.
