Private equity and private credit in the lead for UK and Ireland investors

As we explored recently in Preqin First Close, UK- and Ireland-based investors in private markets remain most focused on private equity and private credit, despite an overall softening in future investment plans across all asset classes. Here, we take a second look at their allocation plans.

The proportion of LPs planning to make new commitments over the following 12 months has declined steadily since 2023, our data shows. But private equity continues to stand out, with the asset class appearing in 44% of UK- and Ireland-based investors’ future investment plans, while a further 7% are considering it (as of December 2025). Meanwhile, 39% plan to invest in private credit, and 9% are considering it (Fig. 1).

Infrastructure is also popular, with 34% targeting it for new commitments. Real estate appears resilient, with investment intentions remaining stable year-on-year.

Fig. 1: UK- and Ireland-based private capital LPs’ investment plans over the next 12 months

_{Source: Preqin Pro. Data as of December 2025}

Within private equity, VC is the most targeted strategy, with 39% of investors mentioning it in their future investment plans (Fig. 2). Buyouts remain a close second, featured in 27% of private equity investment plans, followed by growth at 19%.

Fig. 2: Private equity strategies targeted by UK- and Ireland-based investors over the next 12 months

_{Source: Preqin Pro. Data as of December 2025}

Direct lending was the most prominent private credit strategy in 2025, with 52% of UK- and Ireland-based private credit investors targeting it, albeit less than the peak of almost 70% in 2023 (Fig. 3). Other popular strategies of the past year included mezzanine (38%) and special situations (43%). The latter increased from 34% the year before. Distressed debt and infrastructure debt, however, experienced sharp declines.

Fig. 3: Private credit strategies targeted by UK- and Ireland-based investors over the next 12 months

_{Source: Preqin Pro. Data as of December 2025}

Regionally, Europe (including the UK and Ireland) remains the dominant focus for UK- and Ireland-based private equity investors (Fig. 4). The region features in 65% of investment plans, although this marks a decline from its peak in 2023 (73%). North America has also seen waning interest from UK- and Ireland-based private equity investors since 2022.

Fig. 4: Regions targeted for private equity by UK- and Ireland-based investors over the next 12 months

_{Source: Preqin Pro. Data as of December 2025}

Among real estate investors, higher risk/return strategies such as value-added (17%) and opportunistic (17%) have remained fairly robust, having seen only slight declines (Fig. 5). Meanwhile, core (28%) and core-plus (21%) have grown in popularity since 2024.

Fig. 5: Real estate strategies targeted by UK- and Ireland-based investors over the next 12 months

_{Source: Preqin Pro. Data as of December 2025}

Infrastructure follows a similar trend, with core and core-plus strategies growing their share of total investment plans. Infrastructure debt saw the most notable decline in LP interest, from 27% in 2024 to 24% in 2025 (Fig. 6).

Fig. 6: Infrastructure strategies targeted by UK- and Ireland-based investors over the next 12 months

_{Source: Preqin Pro. Data as of December 2025}

The geographical scopes of real estate and infrastructure investment look very different. Europe infrastructure has seen the largest drop in focus from 2024 to 2025, with a 12% fall in its share of investment plans by UK and Ireland LPs (Fig. 7).

Fig. 7: Regions targeted for infrastructure by UK- and Ireland-based investors over the next 12 months

_{Source: Preqin Pro. Data as of December 2025}

But the region is extremely diverse, with countries such as Germany, its largest economy, planning to ramp up investment in infrastructure, as well as defense.

Preqin’s 12-month plan data is primarily gathered via direct engagement with LPs by our researchers.

Alex Jessup and Connor Rogers are Analysts in Preqin’s EMEA Investor Data Team.

Second Look is edited by Libby Fennessy, Production Editor of Preqin First Close.

Read the original story in Preqin First Close here.

It’s quick, free, and easy to subscribe here.

_{The opinions and facts included in the above do not constitute investment advice. Professional advice should be sought before making any investment or other decisions. Preqin accepts no liability for any decisions taken in relation to the above.}