Political advocacy

As we look back on the past year, one thing is clear – private equity and venture capital are more than just financial instruments; they are now seen as engines of innovation, growth, and resilience in Europe’s economy. In a (too) rapidly evolving policy landscape, Invest Europe has worked tirelessly to ensure that our industry’s voice is heard, our interests protected, and our ability to drive long-term value strengthened.

A key focus of our efforts has been reinforcing private equity’s role in Europe’s broader economic and competitiveness agenda. With the launch of Forward, setting out our agenda for the 2024-2029 European Commission mandate, and through continuous engagement with decision-makers, we have positioned the private equity and venture capital industry as a central player in shaping Europe’s future prosperity. We, as a sector, received a prominent place in era-defining works such as the Draghi report on EU competitiveness, a sobering read about what our continent now needs to accomplish.

Regulatory stability remained a priority last year. As the finalisation of AIFMD II progresses, we actively contribute to discussions on delegation, liquidity, and reporting requirements. Our objective is to ensure a well-balanced framework that supports growth while maintaining investor confidence. The upcoming “simplification” agenda offers opportunities to make the rules more fit for purpose.

Sustainability regulation continues to evolve, and we have been at the forefront of efforts to provide clarity and reduce unnecessary burdens on investors. Our engagement with policymakers on the implementation of the CSRD and CSDDD has helped shape a more pragmatic approach (as seen most recently with the Omnibus proposal), while our contributions to the SFDR review ensure that the unique characteristics of private equity and venture capital can be recognised in the EU’s sustainable finance agenda.

Fundraising is fundamental to our industry’s success. We secured significant improvements to the ELTIF framework, making retail investment in semi-liquid products more accessible. We also successfully advocated for changes in the EU’s Retail Investment Strategy to ease the marketing of private equity funds to high-net-worth individuals, broadening opportunities for investors while maintaining high standards of protection. This work will continue deep into 2025.

Our collaboration with the European Investment Fund has also been crucial in ensuring continued public support for venture capital at a time when funding conditions have been increasingly challenging. Here too 2025 represents opportunities – the defence sector immediately comes to mind – as well as threats, especially in light of the global impact of uncertainty and strained public resources.

In parallel, we have worked closely with financial regulators to ensure that private equity is appropriately understood in discussions on financial stability. By engaging with EU and international authorities, we have pushed back repeatedly against unnecessary regulatory burdens that could hinder investment.

Beyond regulation, our thought leadership and policy events have provided a platform for meaningful discussion on Europe’s investment landscape. From competition policy to the future of the Single Market and innovation funding, we have convened industry leaders and policymakers, including distinguished speakers such as former Italian Prime Minister Enrico Letta. Our policy-focused events, alongside webinars and reports, have reinforced our position as a key voice in shaping Europe’s investment ecosystem.

As we step into a new phase of European policymaking, Invest Europe remains committed to ensuring that our industry continues to thrive. Through engagement, expertise, and a clear vision for the future, we will work alongside policymakers, investors, and businesses to build a regulatory and economic environment that fosters sustainable growth, innovation, and long-term investment.

The challenges ahead are real, but so are the opportunities. It is only together that we will shape the future of private equity and venture capital in Europe.