European capital under management reaches record €1.37tn in 2025, portfolio at cost and dry powder hit new highs

• Capital under management up 8% year-on-year, representing 2.7x growth over 10 years

• Industry dry powder rises to €459 billion, in line with last four years of investment

Brussels, Belgium, Embargo 23 July 2026 1100 AM CET - Invest Europe, the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors, today published Positioned for the Challenge: Capital Under Management & Dry Powder 2025. The seventh annual edition of the report demonstrates strong and sustainable growth in the European private equity and venture capital industry over the last 10 years, as well as record reserves of capital available to back businesses at all stages of their development, from innovative start-ups and scale-ups to mature market leaders.

• Capital under management grew 8% to €1.367 trillion in 2025, marking another year of steady growth across all segments. Europe’s private equity and venture capital ecosystem is 2.7x larger than in 2016 and is 68% larger in terms of capital under management than five years ago. The buyout industry accounted for 63% of the total, including €557 billion of portfolio assets at original investment cost. VC capital under management totalled €189 billion and growth capital €181 billion.

• Dry powder grew to €459 billion, which equates to 93% of the total invested across the continent in the four years from 2022 to 2025, maintaining European private capital supply in balance with investment opportunities. Buyout dry powder amounted to €307 billion, while VC dry powder grew to €66 billion, providing significant reserves to help develop and scale innovative start-ups.

The research indicates that through challenging markets and unpredictable conditions, European GPs have been consistent in deploying investor capital into businesses. The time taken for the percentage of funds raised to drop below 30% was roughly constant across all vintages in the study at around 5-6 years. Funds also take 6-7 years to reach their maximum portfolio at cost as a percentage of funds raised.

Eric de Montgolfier, CEO of Invest Europe, commented:

“European private equity and venture capital continues to grow and draw commitments from long-term investors, attracted by Europe’s stability and predictability, as well as its investment potential. That means sizeable reserves of dry powder across all stages to back European businesses and contribute to European innovation, competitiveness, growth and success.”

Invest Europe’s Capital Under Management and Dry Powder report analyses the sources of capital to show that pension funds were responsible for 23% of uncalled commitments across Europe in 2025. It also indicates that the UK and Ireland was the largest region for capital, accounting for 53% of portfolio at cost and 46% of dry powder. Furthermore, the report highlights the rising influence of new managers, often spinning out of financial institutions and other firms. Some 1,728 first-time managers have entered the market since 2016, with their share of capital under management rising to a high of €246 billion in 2025.

Click to download Invest Europe’s Positioned for the Challenge: Capital Under Management & Dry Powder 2025.

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Invest Europe is the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors. We have 626 members, split roughly equally between private equity, venture capital and limited partners – with 104 associate members representing advisers to our ecosystem. Those members are based in 57 countries, including 42 in Europe, and manage 60% of the European private equity and venture capital industry’s €1.37 trillion of assets under management. Businesses with private capital investment employ 11.4 million people across Europe, 5% of the region’s workforce.