UK tech leaders embrace risk, private equity & global growth

UK technology, IT and telecoms business leaders have reported a sharper appetite for risk, alongside growing interest in private equity funding and international expansion.

A survey commissioned by ECI Partners found that 55% of respondents in tech, IT and telecoms said they were more willing to take risks than a year ago. The survey found 21% reported a lower appetite for risk. A further 24% said their risk appetite had not changed.

The results suggest a more optimistic outlook among UK executives in the sector, even as companies continue to report pressure from costs, talent and emerging technology shifts.

Cost concerns

Rising costs ranked as the most frequently cited challenge for tech, IT and telecoms firms in the research. The survey found 31% of respondents pointed to cost increases as their biggest concern.

Other pressures followed at a distance. Digital transformation ranked next on 15%. The perceived threat from AI accounted for 14%. Talent shortages stood at 11%. Regulation and compliance came in at 10%.

The survey also compared sentiment with the retail sector. It found that 31% of retail sector companies reported a higher appetite for risk. The survey noted that national insurance and business rates changes may have influenced retail sentiment.

Private equity

The research pointed to continued private equity interest in the mid-market. It found that 54% of tech, IT and telecoms businesses said they were considering private equity investment.

The responses also suggested that management teams want more than funding. When asked about the benefits of private equity, respondents cited sector expertise and networks at 30%. They cited technology and AI expertise at 30%.

International reach followed at 14%. Access to talent came in at 9%.

Private equity firms have targeted software, IT services and telecoms assets in recent years, driven by recurring revenues and demand for modernisation across industries. The survey results indicate that those themes remain relevant in current boardroom thinking, despite higher operating costs and uncertainty over the pace of AI-related change.

Expansion plans

International expansion featured heavily in the findings. The survey found that more than 89% of tech, IT and telecoms businesses were considering international expansion as a growth driver in 2026.

Among those exploring expansion, respondents most often pointed to private equity and venture capital as preferred funding routes. The survey found 35% cited these options.

Government grants and bank finance followed, each cited by 19% of respondents. The findings indicate that external capital remains central to cross-border growth plans, even as companies weigh alternative sources of funding.

International expansion plans can involve a range of strategies, including sales hiring, partner-led distribution, acquisitions, and product localisation. Many UK-based technology firms also face additional hurdles from compliance requirements and differing procurement practices across markets.

In the survey, AI appeared both as a concern and as an area where businesses wanted external expertise. Respondents listed technology and AI expertise as a leading benefit they associated with private equity involvement, matching the share that cited sector expertise and networks.

ECI Partners said the findings reflected what it was hearing from executives across the market.

"This research is what we like to see as investors - positive sentiment from UK business leaders with a renewed appetite for risk. What is particularly striking is the number of management teams actively considering private equity as they look to expand internationally and navigate the shifting sands of GenAI. We see this from the Founders and CEOs we speak with, who are looking for experience and expertise from their partner to navigate the growth opportunities ahead of them. Across five decades of investing we've refined a repeatable value creation model, which is one reason many CEOs look to partner with ECI. The findings reflect this, underlining that businesses increasingly see PE as a strategic partner, not just a provider of capital."," said Tom Wrenn, Managing Partner, ECI.

ECI said it manages funds of about GBP £3bn. The firm said it invests in growth businesses valued up to GBP £300m, and it can take majority or minority stakes.

The survey findings indicate that risk appetite, funding discussions and international plans sit alongside persistent cost pressures for UK tech, IT and telecoms leaders as they set out growth priorities for the year ahead.