Chair’s message

The past few months – even the past few years – have been among the most surprising and challenging many of us have ever experienced. Some argue that the world order is changing, that the rule book we have lived by for decades is being shredded.

How long this will last is unknown. However, private capital’s view extends far beyond the immediate horizon. Our funds manage capital for ten years or more. The relationships we build with long-term investors, including pension funds, insurers and family offices, can prosper over multiple fund cycles – in other words, generations. Of course, volatility and uncertainty have an immediate impact on activity, but many enduring themes around the adoption of technology and the move to a more sustainable economy are undiminished – our industry focuses on these long-term secular shifts rather than short-term speculation. It is this perspective that positions our industry as a central pillar in building a resilient and prosperous Europe.

The election of a new European Parliament and appointment of a new European Commission in Brussels last year kickstarted a discussion about investment and competitiveness in Europe. This year, the debate has intensified and led to new political commitments, particularly in terms of defence investment and AI, including the infrastructure to support it. There is a new urgency to investment plans that can strengthen and protect Europe and its citizens. And we have heard again about how public funding alone cannot foot the bill and how private capital will be essential – including from leading existing and former policymakers across the spectrum.

As custodians of the longest-term and most patient pools of capital in Europe, not to mention some of the largest, we are here, and we are ready to invest. But as outlined in Forward, Invest Europe’s publication for the 2024-2029 parliament, there is still work to be done on breaking down barriers to private capital investment. And we need to ensure the right incentive structures for capital to flow to long-term European priorities. As you will read in this Annual Report, Invest Europe has wasted no time in making sure that message is heard and understood, talking directly with senior policymakers in Brussels, and advocating for the requirements of our members when it comes to mobilising all forms of private equity and venture capital.

Our industry has deep connections with European innovators, entrepreneurs and corporates. We understand transformative sectors and business. And we have a unique ability to source, pool and efficiently allocate long-term capital. Indeed, private equity and venture capital firms are actively unlocking new sources of capital, including defined contribution pensions and private wealth, via ELTIFs and other structures that address some of the challenges that have historically prevented those investors from accessing private assets. Investors see opportunity precisely because private assets are aligned with their objectives, long-term trends, and increasingly with European self-reliance and sovereignty.

It has been my privilege to serve as Invest Europe’s Chair over the last 12 months, and to participate in the work to bring private capital even further into the limelight, highlighting its benefits for Europe’s economy and society, and as a key player in Europe’s future. I would like to salute Eric de Montgolfier and the whole team at Invest Europe for their tireless efforts on behalf of members.

As we have seen in recent weeks and months, Europe’s institutions can be dynamic, focused, and principled – characteristics that private capital itself exemplifies. In an increasingly volatile and unpredictable world, private capital can – and will be – a reliable and powerful force for a stronger and more competitive Europe.