Canada has knocked the UK off its spot behind the US as the most attractive country for private equity, according to a report by Spanish business school IESE.

Poor economic activity was the main driver for the fall in the UK's ranking, with the country's expected real gross domestic product growth ranked 104th globally. In other criteria, however, such as the size and liquidity of its stock market and the quality of legal enforcement, the UK still ranks among the best in the world.