Investing in Europe: Private Equity activity 2024

Fundraising rises 16% to €147bn in 2025, driven by buyout funds and US investor appetite
Investment increases to €135bn; buyout and VC investment exceed historic averages

Brussels, Belgium, Embargo Thursday 7 May 2026 1100 CET - Invest Europe, the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors, today published Investing in Europe: Private Equity Activity 2025, the most comprehensive report into industry activity across the continent. The data shows resurgent investor demand for European private equity and venture capital funds leading to the second-best year for fundraising, while investment also had its second-strongest year on record, highlighting European private capital’s appeal and resilience in a volatile and unpredictable world.

Private equity and venture capital firms raised €147 billion in 2025, a 16% increase on 2024 levels and second only to 2022’s record. Buyout fundraising was the driver as it reached €103 billion, a 33% increase. North American investors were the biggest source of capital for the segment, accounting for almost 30% of the total, demonstrating resurgent demand for European funds amid policy and economic uncertainty in the region.
Investments rose 3% to €135 billion, representing the second-best year after 2021. Buyout investments reached €90 billion in 2025, closely in line with 2024 and 16% above the average of the last five years. The mid-market segment represented 34% of the total buyout amount as managers channelled capital into SMEs and growing business that are the backbone of Europe’s economy – indeed, Europe’s ‘quiet power’. VC investment increased to €20 billion, 20% above the five-year average.

The data reflects an acceleration in activity across the board in the second half of 2025 as investors and managers recovered from the impact of trade uncertainty in the first half and targeted the long-term stability, predictability and performance of European private capital. After the recovery in divestments in 2024, exit value remained strong at €45 billion in 2025, ensuring capital distributions to LPs.

Eric de Montgolfier, CEO of Invest Europe, commented:

“Private equity and venture capital activity showed great strength in 2025 against a backdrop of geopolitical and macro uncertainty. Europe provides a predictable and stable environment for global LPs to deploy their money, as well as being full of dynamic and high-potential businesses for skilled managers to back and grow.”

Investing in Europe: Private Equity Activity 2025 breaks down activity across segments, stages, sectors and regions to give a detailed view of the industry’s impact across Europe. For the first time, the report also includes fundraising and investment levels for continuation funds, as well as investment in the strategic sectors of defence and deep tech, led by Europe’s vibrant biotech and life sciences industry.

Click to download the full Investing in Europe: Private Equity Activity 2025 report and supporting data.

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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 €1.247 trillion of assets under management. Businesses with private capital investment employ 11.4 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.