For 80 years, Europe has built peace and prosperity through cooperation.
The result: a sizeable, stable economy powered by public and private capital. Today, Europe is the world’s second-largest economic area.
In a fracturing global order, Europe offers what investors value most: stability, predictability, and long-term opportunity.
Europe's strengths at a glance
532m
population
€23.8tn
GDP, 2nd largest globally; 30% of world trade
1.4%
annual average GDP growth since 2010
Europe: a foundation of stability
Rooted in centuries of institution-building, Europe’s rule of law underpins international legal frameworks. Independent institutions ensure transparent governance, protection of individual liberties, a strong business environment, and integrated financial markets. And Europe’s reach extends well beyond the EU’s 27 member states. With closely aligned trade, legal, and defence frameworks, the continent anchors three of the world’s most traded currencies: the euro, sterling, and Swiss franc.
Europe's financial strength
19
of the world's top 50 banks
81.7%
Debt-to-GDP vs 122.5% in the US
3
of the world's most traded currencies
Europe: a global innovation and business powerhouse
Europe consistently ranks among the best in the world for creating and scaling world-class businesses, from cutting-edge tech and science to established global leaders.
Europe's innovation nations
7
of the world’s top 10 most innovative countries (WIPO)
5
of the top 10 for competitiveness (IMD)
4
of the top 10 for ease of doing business (World Bank)
Momentum for the next decade
Europe attracts more than 5,000 new or expanded FDI projects each year, creating hundreds of thousands of jobs (EY). Yet the Draghi Report (2024) estimates €800 billion is still needed in infrastructure and technology to remain globally competitive. Geopolitical shifts are driving Europe to strengthen sovereignty, protect its values, and invest in long-term strategic priorities. For investors, the opportunities are enormous.
Europe’s investment ambitions
5%
(up to) of GDP on defence projects in NATO nations
€800bn
ReArm Europe / Readiness 2030
€200bn
EU InvestAI initiative
€100bn
EU Clean Industrial Deal
€500bn
German infrastructure and defence package
The role of private equity & venture capital
Public funding alone will not meet Europe’s strategic ambitions. Private equity, including large buyouts, and venture capital are central to unlocking growth, financing innovation, and building globally competitive companies across industries.
Private equity and venture capital: essential investment, outstanding returns
€1.37tn
under management at end-2025 → 2.7x growth over the last decade
14.73%
net IRR for Buyout PE funds since inception vs 13% over 30 years for North American LBO funds
€103bn
Buyout fundraising in 2025, a 33% increase from 2024, with North American investors representing 30% of the total, from 24% in 2024
17%
net IRR since inception for European mid-market buyout → TVPI of 1.81x
16.59%
10-year net IRR for European VC → ahead of North American VC funds (13.77%)
European private equity and venture capital form a mature yet dynamic ecosystem. They finance tens of thousands of companies, employ millions, and generate superior returns for investors, from global institutions to European pensioners and savers.
Private capital: a cornerstone of Europe’s economy
11.4m
people employed by PE and VC-backed companies → 5% of Europe’s workforce
295,312
jobs created in 2024 → +4% YoY, outpacing overall European job growth for the seventh year in a row
€135bn
invested in 8,467 companies in 2025
As Europe’s public markets contract, private capital continues to expand
1,572
listed companies at the London Stock Exchange in 2025 → down 31% from 2015
6,538
listed companies in the EU in 2018 → down 12% from 2010
29,338
European companies in 2025 backed by PE/VC funds → including 8,467 new investments that year
Why businesses choose private capital
Private equity and venture capital free founders and management teams from short-term share-price pressures. With professional and disciplined PE/VC investors, companies can focus on long-term growth, stability, and innovation.
Start-ups stay private longer to benefit from active investor support
Established companies increasingly leave public markets for lower volatility
European PE showed volatility of just 13%, compared to 17% for MSCI Europe and 19% for CAC 40
Room to grow
Private capital is essential to thriving economies, but the opportunity in Europe is still vast.
PE/VC-backed businesses contribute 6.6% of European GDP, vs 12.4% in the US
A front-row seat to growth
European private capital offers investors a unique combination of value, resilience, and upside potential: ☑️ European businesses trade at lower multiples than US peers → long runway for expansion ☑️ Strategic capital flows are rewriting valuations, with early investors capturing gains ☑️ Leading European PE/VC managers deliver operational expertise, scaling start-ups and buyouts with proven toolkits
Growing investor appetite
Global investors are already tilting towards Europe. A recent survey of 198 investors managing $530 billion showed the largest-ever shift from US equities to European markets (Bank of America). Private markets mirror this trend with investors seeking stability, growth, and diversification.
Expanding opportunity
Private capital provides more than funding. Experienced managers bring expertise, networks, and operational excellence, helping start-ups, SMEs, and mid-sized companies grow stronger and more resilient. As public markets shrink – with listed companies on the London Stock Exchange down 31% since 2015 – private markets are expanding, offering investors unique access to Europe’s most dynamic businesses.
The fix: clearer, faster, more open
To attract more global capital, Europe must make investment simpler and more predictable:
Clarify rules so passive investors in funds aren’t treated as decision-makers.
Streamline screening with a single EU-wide system instead of fragmented national regimes.
Create a One-Stop Shop for cross-border investment approvals.
The ambition: by 2029
Europe should not just maintain today’s levels of foreign investment: it should grow them. That means turning Europe from a regulatory citadel into a global investment magnet.
