The U.K. private equity market slumped to its lowest level for 25 years in the third quarter with just 31 completed deals, underlining the difficulties buyout shops continue to face while loan finance to fund acquisitions remains elusive, according to a study released Monday.

The value of buyouts over the same period also dived, with just GBP556 million exchanging hands, the lowest for 15 years and taking the total value for the first nine months of the year to GBP3.6 billion, dramatically lower than the yearly figures of GBP18.2 billion and GBP43.4 billion in 2008 and 2007, said the Centre for Management Buyout Research, or CMBOR.

Even midmarket deals - those below GBP500 million - have become scarce and private equity firms across the board are having to stump up more cash when they buy companies, said CMBOR.

As a result private equity buyouts as a percentage of overall U.K. M&A activity has fallen 21% by value since last year, representing just 26% by value of the total market and a long way from 2007 when 62% of all takeover activity comprised private equity buyouts.

"The private equity market isn't yet showing any significant signs of recovery," said Christiian Marriott, director at Barclays Private Equity, sponsor of the research.

"The only upswing is in the number of businesses in receivership acquired by private equity firms, which has risen to 17, a rise of 55% on the year and its highest level since [the last boom and bust in] 2001," he added.

-By Marietta Cauchi, Dow Jones Newswires; +44 207 842 9241; marietta.cauchi@dowjones.com