Invest Europe Research

Positioned for the Challenge: Capital Under Management & Dry Powder 2024

Data and insight

24 Jul 2025

The most comprehensive analysis of the European private equity industry’s growth in assets over the past decade, as well as available capital for future investment. The report demonstrates private equity and venture capital’s increasing scale as it becomes more embedded in Europe’s economy and society, and its capacity to back businesses and industries that represent the future in terms of growth, innovation and sovereignty.

Tags:

capital-under-management-and-dry-powder-2025-cover-web.jpg

Report

European private equity* is a mature yet dynamic industry, populated by professional fund managers and supported by sophisticated investors. Throughout the continent, managers are investing across the spectrum – from start-ups and SMEs in need of expertise to grow to established companies that require strategic direction – while raising new money from investors eager for returns.

European private equity and venture capital under management grew 7% to €1.25 trillion in 2024, spread across 3,095 active firms, representing more than 10 consecutive years of growth, with the industry’s assets 2.6x times greater than a decade ago in 2015. The figure includes €834 billion of portfolio at cost (PAC), of which €507 billion was held by buyout funds, the first time the value of portfolio assets at original investment cost has exceeded half a trillion euros. At €111 billion, VC funds held portfolio assets worth more €100 billion for the first time.

Private equity and venture capital dry powder increased to a new high of €414 billion in 2024. The figure equates to 81% of the €511 billion invested over the past four years, indicating that available capital is in tune with the investment opportunities being found across the continent. Buyout firms’ dry powder fell slightly to €278 billion, although venture capital uncalled commitments rose to €59 billion, highlighting continued investor appetite for funds that support start-ups at the forefront of European innovation and competitiveness, as well as the continent’s rising ambitions in sectors including AI, deep tech and defence tech. It also shows the positions of long-term investors across European funds when it comes to capital under management, as well as uncalled commitments. Pension funds account for 26% of total dry powder, followed by funds of funds and other asset managers on 19%, and 13% for family offices and private individuals.

*Private equity encompasses Buyout, Generalist, Growth, Mezzanine, and Venture Capital.