European private capital long-term returns maintain wide lead over public markets, as 2024 performance rebounds

• European Buy-Outs: net IRR of 14.86% since inception, beating MSCI Europe benchmark on 6.21%

• European growth capital net IRR of 14.57% since inception, ahead of MSCI Europe’s 7.35% return

• VC net IRR of 18.95% over 10 years, 11.34% since inception, showing maturing of ecosystem 

Brussels, Belgium, 26 June 2025 - 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 2024’, its sixth annual study documenting the strength and consistency of European private capital returns. The report shows buy-outs, growth capital, venture capital and infrastructure funds’ strong outperformance of European listed equities over the long timeframes that matter long-term investors, such as pension funds and insurers. Meanwhile, 2024 performance recovered as markets improved and managers drove value creation at underlying businesses.

European buy-outs delivered a net IRR (Internal rate of return) of 14.86% since inception to the end of 2024 versus 6.21% for the MSCI Europe, representing an outperformance of 865 basis points, narrowing slightly from last year. The segment delivered a total value to paid-in (TVPI) multiple of 1.70x, also far ahead of the MSCI Europe’s 1.26x result. Mid-Market buy-outs had the best performance of the segment with net IRR of 17.05%, increasing their lead over the listed equity benchmark to 990 basis points. Overall, European buy-outs continued to perform in line with North American funds, and exceed the performance of funds from the Rest of the World, while distributing capital to investors in an average of just 3.83 years, almost a year earlier than North American peers. 

• European growth capital yielded a net IRR of 14.57% since inception, far ahead of the MSCI Europe’s 7.35% return, while creating a TVPI of 1.60x, also well in excess of the benchmark’s 1.25x. The segment lagged North America growth capital by over 590 basis points since inception, but beat the Rest of the World by 500 basis points, marking a significant improvement on both counts in 2024.

• European venture capital provided a net IRR of 18.95% over 10 years and eclipsed the performance of North American funds over the same time period in both euros and dollars, highlighting the growth in dynamic start-ups and the maturation of the VC ecosystem following the dot.com era. Since inception, VC net IRR was 11.34% with a TVPI of 2.04x, significantly beating the comparable MSCI Europe performance of 8.06% and 1.39x.

• European infrastructure funds yielded a net IRR of 9.0% since inception, with a TVPI of 1.56x, both ahead of the MSCI Europe Infrastructure index performance of 4.30% and 1.22x. Over long periods from five years up to 20 years, European infrastructure funds returned consistently between high single-digits and low double-digits.

Invest Europe’s Performance Benchmark Report aims to show the long-term outperformance and consistency of private capital asset classes versus European equities benchmarks, while also showing the competitiveness of European managers versus those from other regions. It also highlights the short-term performance of funds, illustrating their lower volatility compared with public benchmarks, meaning that they frequently lag when public markets rise strongly, but outperform in weaker conditions.

The data shows recovery in all industry segments in 2024 as markets picked up amid falling interest rates and reducing inflation, and managers drove operational improvements at portfolio companies that translated into higher valuations. Buy-outs registered a 9.69% net IRR in 2024, while growth capital funds returned 14.86% and venture capital funds returned 12.65% - both recording the highest performance levels for the year as valuations for European early-stage and fast-growing tech and biotech companies rebounded; infrastructure funds returned 5.49% for the year.

Eric de Montgolfier, CEO of Invest Europe, commented:

“European private capital not only provides investors with superior returns, but it also brings access to an ever-growing group of world-class private companies. Whether it is backing early-stage start-ups, fast-growing SMEs, mature multinationals, or essential infrastructure projects, private capital has an essential and additive space in investors’ portfolios, and has an equally important role in delivering Europe’s future.”

Invest Europe’s Performance Benchmark Report 2024 provides deep insights for investors to understand the performance of European private capital asset classes, and analyses data across a range of metrics, including mPME, which is designed to allow a transparent and comparable performance for private capital and public equity investments.

In addition to comparing regions, the Performance Benchmark report analyses emerging managers versus established teams. And it compares active funds with liquidated funds across all segments, and details the time needed for funds to distribute capital to investors. This year’s study also shows the last 10 years of realised (or largely realised) funds for buy-outs and venture capital, covering the period that included the Global Financial Crisis, to demonstrate that European funds outperformed their domestic benchmarks through intense market volatility and economic disruption and realised strong value creation for investors.

Click to download The Performance of European Private Equity Benchmark Report 2024.

-ENDS-

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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 over 650 members, split roughly equally between private equity, venture capital and limited partners – with some 110 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 €1.15 trillion of assets under management. Businesses with private capital investment employ 11.2 million people across Europe, 5% of the region’s workforce.

Disclaimer: The content is for informational and research purposes only. It does not constitute financial advice, investment guidance, or a solicitation to buy or sell any financial products or services. Invest Europe is a non-profit organisation dedicated to research, policy insights and reputation management. Any references to investment, finance, or related topics are based on specific and verifiable data and presented strictly within a research and educational context.