Traditional company buy-outs have made a dramatic comeback - making up over 40 per cent of the market by value.
The statistics come from analysts CMBOR, founded by Barclays Private Equity and Deloitte, and were yesterday hailed as a boost for the West Midlands.
Phil Griesbach, director of Barclays Private Equity in Birmingham, said the figures revealed that some 43 per cent of total market value - the highest share for five years - was from corporate vendors.
He went on: "This is good news for the private equity industry, especially here in the Midlands where the MBO market has traditionally been fueled by businesses divesting non-core operations.
"Additionally, there is a perception that these so-called primary buy-outs yield much better returns than secondary ones.
"Many have been increasingly concerned that the huge growth in secondaries since 2001 - from five per cent of the market to 37 per cent in 2005 - could eventually lead to much lower overall returns as private equity consumes itself.
"The increase in corporate buy-outs appears to be driven by the current global mergers and acquisitions boom - corporate predators often dispose of the unwanted parts of acquisitions in the form of buy-outs."
Since the start of 2006 there has been a lot of confidence in the public arena, with big private equity plays being rebuffed.
Nick Johnson, corporate finance partner at Deloitte in Birmingham, said: "We have seen a huge dip in public to private deals in 2006, with a value of only £1.5 billion completed so far compared with £5.2 billion for the same period last year, a dramatic decrease of 72 per cent.
"Public company shareholders have proved incredibly resilient to private equity advances this year."