European private capital long-term returns beat public markets over long term to the end of 2025 and eclipse other regions short term

• European Buy-Outs: net returns of 14.73% since inception, 786bps ahead of MSCI Europe

• European VC: net returns of 16.59% and 17.06% over 10 and 15 years, beating North American funds

• All private capital segments deliver positive net returns in 2025, ahead of other regions

Brussels, Belgium, Embargo 25 June 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 The Performance of European Private Equity Benchmark Report 2025, its seventh annual study documenting the strength and consistency of European private capital returns. The report shows buy-outs, growth capital, venture capital and infrastructure funds continuing their strong outperformance of European listed equities over the long term. All segments also delivered positive returns in 2025, eclipsing the performance of funds from North America and the Rest of the World in volatile markets.

• European buy-outs delivered a net IRR (Internal rate of return) of 14.73% since inception to the end of 2025, 786 basis points ahead of the MSCI Europe benchmark. European VC funds had a net IRR of 11.25% since inception, ahead of MSCI Europe index. VC net IRRs improved to 16.59% and 17.06% over 10 and 15 years, beating North American VC funds in both euro and dollar terms. European growth capital funds and infrastructure funds beat their benchmarks with net returns of 14.17% and 8.83% respectively.

• All European fund segments posted positive net IRRs in 2025 (in both euros and dollars), ahead of North America and the Rest of the World. European buy-outs had a net IRR of 4.13% in euros and growth funds delivered 11.60% versus negative returns for North American peers. European VC funds had a net IRR of 7.43% in euros, 52bps ahead of North American funds. European infrastructure funds posted net IRRs of 5.99% in euros in 2025 against negative returns from North America.

Strong outperformance compared to listed equity benchmarks indicates that European fund managers are adding real value to companies, not merely benefitting from favourable macro or market conditions, making the case for long-term LP allocations to private markets. Short-term net returns reflect the low volatility of European private assets and the fair and attractive holding values of European businesses.

Eric de Montgolfier, CEO of Invest Europe, commented:

“European private capital funds strongly outperform listed equity benchmarks and routinely beat funds from North America and the Rest of the World. Whether it’s buy-outs, growth capital, VC or infrastructure, investments in European private assets consistently deliver the uncorrelated net returns and diversification that long-term investors, such as pension funds and insurers, need.”

Invest Europe’s analysis also compares returns based on total value to paid-in capital and mPME metrics, and assesses the performance of emerging and established GPs, liquidated fund versus active funds, and time to liquidity to provide in-depth performance analysis and insight to global investors.

Click to download The Performance of European Private Equity Benchmark Report 2025.

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About Invest Europe

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 €1.247 trillion of assets under management. Businesses with private capital investment employ 11.4 million people across Europe, 5% of the region’s workforce.

For more information visit www.investeurope.eu