Eric de Montgolfier - CEO, Invest Europe

2023 was a landmark year for Invest Europe as we celebrated our 40th anniversary with events, new publications and communications that highlighted private equity and venture capital’s contribution to Europe’s economy and society.

It may not have always felt like a year to remember, but in tough times Europe needs private equity and venture capital investment to support companies and communities, feed innovation and entrepreneurship, and supply long-term investors with returns that contribute to pensions and savings for millions of citizens. And the industry needs powerful advocates like Invest Europe to explain how private equity works and why it really matters.

Our industry has come a long way in 40 years. With over €1 trillion of capital under management in Europe, it’s a cornerstone upon which the continent’s economy and society stands. Yet, there is still suspicion and misunderstanding about how private equity operates and its objectives. Invest Europe’s work in 2023 succeeded in getting our message across and making a meaningful difference to the environment for our members in Europe.

Invest Europe was instrumental in securing a narrow revision of the Alternative Investment Fund Managers Directive (AIFMD), the most significant piece of legislation affecting the private equity industry in Europe, and helped secure financial services’ exemption from the Corporate Sustainability Due Diligence Directive.

At the same time, we continued to work to shape rules that have the potential to open up private equity investment to both existing and new investor groups via the Solvency II and ELTIF frameworks. It is clear that, in many circles, private equity and venture capital investment is seen as vital to Europe’s development and success, which in turn demonstrates our influence with European policymakers.

This process of building understanding is a two-way street. We provide critical guidance on European regulation and markets, highlighting the opportunities for members. New Invest Europe ESG Reporting Guidelines, along with our expanded and renewed Investor Reporting Guidelines, and tailored member guides, help encourage best practice that can open doors with investors. They also mark out European private equity and venture capital as a global leader in industry standards, particularly when it comes to action on sustainability and ESG. Our guidance is backed by first-class education for practitioners, not to mention must-attend events that give the industry a forum to network and discuss the topics that are shaping our industry.

Sometimes the most powerful messages come from demonstrating our industry’s real impact, not just financially, but also on people’s lives. Invest Europe’s 40th anniversary microsite pulled together video commentary from 40 leading investors and practitioners, authoritative data, and success stories. It was a model we used again for our venture capital campaign that celebrated the industry’s achievements in Europe, including market- beating investment returns, strong job creation, and biotech innovations that are saving lives. The result was a campaign with widespread reach and unprecedented engagement on social media.

Everything we do is infused with comprehensive data and research. It supports our advocacy with policymakers, defines our reports, and sets the agenda at our events. Frequently it is the data, underlining the real performance and scope of private equity and venture capital investment – and where it can go further – that is the source of many citations and mentions for Invest Europe in the press and academic publishing.

Building Invest Europe’s profile is as important as promoting the industry we serve. Our association welcomed 45 new members in 2023, a year which also marked the creation of our Listed Private Capital Roundtable thereby strengthening representation for the entire industry in Europe. More members means greater reach and more resources with which to celebrate private equity and venture capital’s successes. Like the industry we serve, we are thriving on a virtuous cycle that is seeing our association grow, enabling it to do more on behalf of our members.