Invest Europe calls for bold action to drive innovation and transition ahead of European elections

• Invest Europe sets out agenda for transformation in 2024-29 EU political mandate and beyond 

• Speed and scale essential to unlock more private capital for a more competitive EU 

Brussels, Belgium, 6 June 2024 - Invest Europe, the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors, today published ‘Forward’, its policy agenda, ahead of the 2024-29 EU political mandate. The association’s agenda calls on EU policymakers to take bold action to unlock a wave of investment that empowers innovation, tackles climate change, and strengthens European infrastructure, thereby creating a prosperous, sustainable and world-leading Europe.

Invest Europe’s ‘Forward’ sets out the case for long-term private capital investment and highlights 12 priorities to help the EU accelerate progress on its ambitious goals. These are divided into four themes, from action on the environment and innovation to strengthening infrastructure and European sovereignty.

• Unlocking the capital to fund European change – including removing barriers to pension fund and insurer investment in our asset class to support the digital and climate transition, and attracting more foreign capital. 

• Putting our continent on the global scale – including completing the Capital Markets Union, as well as leveraging existing funding initiatives and eliminating cross-border tax frictions. 

• Boosting innovators and creating the environment for them to thrive – including measures promoting talent mobility and retention, and incentivising equity holdings through EU law. 

• Investing in the ecosystem of the future – including drawing private capital to critical EU sectors, from infrastructure to defence, and ensuring a straightforward EU sustainability disclosure framework. 

With a more competitive Europe seen as critical to achieving the EU’s strategic targets, Invest Europe acknowledges that a common goal has emerged across European industry: more funding is needed for European companies. Private equity, venture capital and infrastructure fund investment are an essential part of the solution, helping feed the innovation that is the cornerstone of meeting digital and sustainability objectives. In contrast, a lack of focus on driving innovation risks leaving Europe strategically unbalanced.

Eric de Montgolfier, CEO of Invest Europe, commented:

“Europe’s future influence and success will depend on the performance and scalability of its innovative companies. Private capital has a clear track record of success in fostering innovation and building better businesses and infrastructure, which can propel companies and the continent to the next level.”

Johannes Huth, Invest Europe Chair 2024-25, Partner and Chairman of EMEA at KKR, added:

“Private investment capital is ready to step up at this important moment in Europe’s history. The sourcing and deployment of that capital needs further work on the policy and regulatory front.”

The European private capital industry has grown significantly over the last five years, now accounting for €1 trillion of capital under management, including €348 billion of dry powder available for investment at the end of 2022.

Invest Europe data shows that private equity and venture capital funds invested €557 billion into European companies in the five years between 2019 and 2023. That capital benefits the economy and society, with 7.2% more jobs created by private equity and venture capital backed businesses in 2022. At the same time, buyout funds delivered 10-year returns of 16.43% to long-term investors such as pension funds, while VC funds returned 23.07% over the same period, helping fund better retirements for European citizens.

European private capital is also a successful conduit for essential international investment. Some €133 billion was raised by European funds in 2023, the third-best fundraising year on record, with approximately 50% of the capital coming from international investors.

The new EU political mandate presents a compelling opportunity for the EU to elevate its ambition. Strategic actions that consider the entire investment ecosystem, starting with institutional investors, can mobilise more private capital and enable the industry to maximise its contribution to enhancing Europe’s competitive edge.

Click here to browse Invest Europe’s 2024-29 policy priorities and read more about private capital’s role in Europe’s transformation and growth.

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NOTES TO EDITORS 

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 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 trillion of assets under management. Businesses with private capital investment employ 10.9 million people across Europe, 5% of the region’s workforce.