New record for European private capital under management as industry reaches €1.15tn in 2023

• Capital under management grows 9% in 2023, now more than double 2017 levels

• European private equity and VC dry powder hits €410bn of firepower for new investment 

Brussels, Belgium, 25 July 2024 - 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 2023, the most comprehensive analysis of the European private equity industry’s scale and investment firepower. The report underlines private capital’s contribution to Europe’s economy, as well as its potential to support businesses across the continent with investment for growth, transformation and transition.

• European private equity and venture capital under management grew 9% to €1.154 trillion in 2023, spread across 2,996 firms, representing ten straight years of growth and more than double 2017 levels. The figure includes €744 billion already invested in European businesses (portfolio at cost), of which €97 billion represented venture capital backing dynamic for start-ups, and €103 billion of growth capital invested in scale-ups and fast-growing enterprises. Buyout firms managed the largest proportion of portfolio at cost at €443 billion.

• Private equity and venture capital dry powder reached a record €410 billion in 2023, equating to 86% of the investment total of the past four years. Buyout firms’ dry powder rose to €284 billion, while venture capital and growth capital levels of dry powder increased modestly to €53 billion and €43 billion respectively, providing continued strong capacity to back companies focused on European innovation and competitiveness, as well as a more sustainable future.

Now in its fifth year, Invest Europe’s Capital Under Management & Dry Powder report highlights not only the size and capacity of Europe’s private capital industry, but also its position in the portfolios of long-term investors. Pension funds accounted for 27% of uncalled commitments, followed by funds of funds and other assets managers – often conduits for smaller pension funds – on 18%. Sovereign wealth funds spoke for 13% of uncalled commitments, on a par with family offices and private individuals.

Eric de Montgolfier, CEO of Invest Europe, commented:

“European private equity and venture capital continues to grow strongly and sustainably. Record capital under management illustrates the industry’s scale and contribution at a European level, providing investment and expertise for young companies to develop their ideas and grow, and more mature businesses to consolidate their positions and expand internationally.”

“Dry powder equals opportunity for businesses and investors, as well as Europe’s economy and society. Europe urgently needs more private capital to fund business transformation and the green and digital transitions. Private equity and venture capital is well-positioned and capitalised to fuel positive change that drives European growth and competitiveness.”

Invest Europe’s report breaks down capital under management and dry powder according to metrics including fund size, vintage year, funds that have held final closings, and region. It shows that funds based in the UK & Ireland accounted for around 50% of capital under management and dry powder, illustrating their continued role in both domestic and pan-European investments. France & Benelux was the second-largest region, accounting for €272 billion of capital under management and €97 billion of dry powder. Next came the Nordics with €125 billion of capital under management and €58 billion of dry powder.

Invest Europe is the leading source of data on Europe’s private equity and venture capital industry, publishing reports focused on industry scale, activity, and returns to investors, as well as its contribution to job creation and performance on ESG metrics. The result is a full and transparent picture that shows how firmly embedded the industry is in Europe’s economy and society, as well as its alignment with policy objectives, business aspirations, and investor demands.

Click to download Positioned for the Challenge: Capital Under Management & Dry Powder 2023.