The UK’s sluggish market for initial public offerings is leaving private equity and venture capital firms with fewer exit routes, increasing their reliance on sales to other buyout shops or large corporates for returns, Pitch Book data show.

An IPO has traditionally been one of the three main routes for investors to get a return on their equity, alongside acquisitions and buyouts. But as London’s public markets experience a drought, with fewer companies interested in listing in the UK, sponsors are finding that avenue closed.

According to the report released on Friday, the lack of public listings is forcing a shift in how firms realize value from their investments.