Europe Private Equity Market

Europe Private Equity Market Size and Share:

The Europe private equity market size was valued at USD 415.1 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 616.8 Billion by 2033, exhibiting a CAGR of 4.28% from 2025-2033. The market is undergoing notable expansion due to the robust deal across various sectors and increased availability of capital. Moreover, increased focus on technology investments, growing emphasis on ESG-compliant investments, and rise of mid-market buyouts are expanding the market.

The primary driver for the Europe private equity market involves the strong deal flow in the various primary sectors of technology, healthcare, renewable energy, and consumer goods.  For instance, in December 2024, EQT Exeter, a real estate investment manager with around USD 30 billion of equity under management, bought two crucial logistics properties in Dartford and Milton Keynes from M&G Real Estate for more than GBP 100 million, furthering its European logistics portfolio. The technology sector has witnessed a spate of investments with an increase in demand for digital transformation and innovation, including fintech, artificial intelligence, and cybersecurity. Healthcare continues to attract significant capital due to its resilience, increased demand for advanced medical solutions, and opportunities offered in biopharmaceuticals and telemedicine. Similarly, the renewable energy sector benefits from Europe's commitment toward sustainability, driven by regulatory frameworks. These high-growth sectors offer the private equity firm investment opportunities yielding handsome returns as well as significant deployment of capital.

Higher demand stemming from the increased availability of capital, which is further assisted by strong investor confidence, buoyed fundraising success. Growing institutional investor appetite, fueled and driven by family offices along with high-net-worths investors, who are looking toward private equity for its likely returns compared to traditional assets. Low interest rates and easy financing conditions have also helped to create a conducive environment for private equity transactions, allowing firms to go on leveraged buyouts and growth investments. For example, in December 2024, BlackRock established two private markets funds aimed at high-net-worth individuals in Europe, the Middle East, and Asia-Pacific, offering access to private equity, debt, and infrastructure with a minimum investment of €10,000. This influx of capital provides private equity players with opportunities to invest in diversified schemes such as mid-market buyouts, growth equity, and venture capital, thereby boosting market expansion.

Europe Private Equity Market Trends:

Increased Focus on Technology Investments

Technology is the fastest-growing sector for private equity investment in Europe, with the digital transformation of the continent. Firms target companies in artificial intelligence, cybersecurity, fintech, and software-as-a-service (SaaS).  For instance, in November 2024, Nordic Capital, a private equity company, acquired the U.S.-based IP management software company Anaqua for $3 billion, expanding its portfolio in the technology sector and enhancing its global presence. The rapid adoption of digital solutions by industries, instigated by transforming consumer behaviors, is making technology businesses more appealing due to scalability and prospects for growth. The venture capital firms also support various technology startups by scaling through buyouts and strategic partnerships, which makes deal flow in this space significant.

Growing Emphasis on ESG-Compliant Investments

Environmental, social, and governance (ESG) factors are gaining more influence in private equity decisions in Europe, due to the high emphasis on sustainability and responsible investing in the region. Firms focus on investments in renewable energy, sustainable agriculture, and companies that show environmentally friendly practices. For example, in December 2024, 360 Capital, a Europe-based investment company,  raised €140 million in its 360 Life II fund, focused on renewable energy, hydrogen, and the reduction of pollution. Furthermore, the trend has been accelerated by the regulatory frameworks of the European Union's Green Deal, encouraging firms to include ESG principles in their portfolios. Private equity players are not only bound by regulatory requirements but also attract investors who embrace ESG. It is through this that long-term value creation and enhanced market credibility are shaped.

Rise of Mid-Market Buyouts

Mid-market buyouts are a significant emerging trend in the private equity market in Europe, triggered by the proliferation of SMEs seeking growth capital. For example, European asset manager buyout activity reached above €14 billion ($15.6 billion) in 2024, as listed firms remained at the top of acquisition targets. This reflects growing interest in the sector's investment opportunities. These transactions bring tremendous potential to create value in areas like operational enhancements, digitalization, and geographic growth. Private equity houses have developed a liking for SMEs because they have immense opportunities for high returns with more flexibility in strategic maneuvers. Additionally, financing conditions have remained favorable and cross-border acquisitions are gaining in appeal as well. Mid-market buyouts represent a testament to the importance of highly tailored investment strategies in attaining maximum growth and return on investment.

Europe Private Equity Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Europe private equity market, along with forecasts at the regional and country levels from 2025-2033. The market has been categorized based on fund type.

Analysis by Fund Type:

• Buyout
• Venture Capital (VCs)
• Real Estate
• Infrastructure
• Others
   

Buyout funds are a significant segment of the Europe private equity market, focusing on acquiring controlling stakes in companies to improve operations and drive growth. These funds primarily target mature businesses across industries, offering strategic expertise and financial resources. In Europe, buyout funds support corporate restructuring, expansion, and value creation, making them a cornerstone of private equity investments.

Venture capital funds play a pivotal role in Europe’s private equity market by providing early-stage funding to startups and high-growth companies, particularly in technology, healthcare, and renewable energy sectors. These funds enable innovation by supporting research, development, and market entry. Europe’s vibrant startup ecosystem drives the demand for VC investments, fostering entrepreneurial growth and technological advancements.

Real estate funds in Europe’s private equity market focus on acquiring, developing, and managing property assets, including commercial, residential, and industrial properties. These funds benefit from the region’s strong demand for sustainable development and urban infrastructure. By offering capital for large-scale projects, real estate funds contribute to economic growth and urban transformation across Europe.

Infrastructure funds target investments in critical assets such as transportation, energy, and telecommunications, which are essential for economic stability and growth. In Europe, these funds support sustainable infrastructure projects addressing the EU’s Green Deal. By financing renewable energy facilities, smart grids, and public transport, infrastructure funds drive modernization and long-term value in the private equity market.

Country Analysis:

• Germany
• France
• United Kingdom
• Italy
• Spain
• Others
   

Germany is one of the most critical players in the Europe private equity market, with the strong industrial base and the innovation in technology. Its automotive, technology, and healthcare sectors attract huge investments in private equity. A strong economy, skilled work force, and focus on sustainability make it an ideal hub for buyouts, growth capital, and venture investments.

France contributes significantly to Europe’s private equity market, with strong activity in luxury goods, renewable energy, and technology sectors. The country benefits from supportive government policies, including tax incentives and funding programs. France’s focus on innovation and sustainability attracts private equity firms seeking high-growth opportunities, making it a key player in the European investment landscape.

The United Kingdom serves as a hub for private equity in Europe, supported by its well-developed financial markets and global connectivity. Key sectors include technology, healthcare, and real estate, with strong activity in venture capital and buyouts. The UK’s regulatory framework, entrepreneurial culture, and access to global investors solidify its position as a leader in the market.

Italy’s private equity market is characterized by investments in fashion, design, and industrial manufacturing. The country’s focus on family-owned businesses and small to medium-sized enterprises (SMEs) presents opportunities for private equity firms to drive growth and modernization. Italy’s thriving luxury sector and expanding renewable energy ventures further advance its appeal to investors.

Spain contributes to the Europe private equity market with an intense emphasis on renewable energy, infrastructure, and real estate. The country’s favorable investment climate and economic recovery have attracted significant capital. Private equity firms leverage opportunities in Spain’s dynamic SME sector and large-scale infrastructure projects, supporting growth and innovation across various industries.

Competitive Landscape:

The Europe private equity market has high competition from both regional as well as global players. They gain access to large capital, strategic expertise, and sector focus to invest in high-value deals. The growth is driven by increased deal activities in the renewable energy, technology, and healthcare segments. Increasing interest in ESG-compliant investments adds to the competition because of the adoption of sustainable strategies by firms. There is also an increasing trend of private equity-backed startups and mid-market buyouts that is fueling competition. The confidence of investors combined with innovative deal structures remains the core driver of the competitive landscape of private equity in Europe. For instance, in 2024, EQT, Europe-based private equity company, acquired PageUp Group from Battery Ventures, aiming to drive global growth, accelerate international expansion, and enhance innovation in talent management software using EQT’s expertise in scaling technology businesses.

The report provides a comprehensive analysis of the competitive landscape in the Europe private equity market with detailed profiles of all major companies.

Latest News and Developments:

• In June 2024, KKR acquired Superstruct Entertainment from Providence Equity Partners for $1.4 billion (€1.3 billion), gaining ownership of over 80 music festivals across Europe and Australia.
• In April 2024, CVC Capital Partners, known for stakes in Six Nations rugby and Lipton Teas, plans to tactically sell over 100 million shares as it prepares to go public on the Amsterdam Stock Exchange. The firm seeks a valuation between €13 billion and €15 billion, marking a significant milestone after years of strategic planning.

Europe private equity Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Europe private equity market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Europe private equity market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Europe private equity industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.