The amount of funds raised by European private equity managers, including breakdowns on stage focus, sources of funds by type of institutional investor and geographic source.
2016 Key Findings
In 2016, total fundraising reached €73.8bn, a 38% increase compared to 2015 and the highest level for Europe since 2008. Almost 400 funds raised new capital. This 9% decrease compared with 2015 indicates a trend towards larger funds.
Pension funds had the largest contribution with 34%, followed by funds of funds (18%), insurance companies (12%), sovereign wealth funds (10%) and family offices & private individuals (9%). More than 40% of the total capital was raised from institutional investors outside of Europe.
Venture capital funds raised €6.4bn in 2016, reaching the highest level since 2007. This trend was supported by an increase in larger venture funds. Thirteen out of 45 venture funds reached more than €100m at final close and were responsible for 80% of the total amount raised. Government agencies contributed 25%, followed by family offices and private individuals (20%), funds of funds & other asset managers (15%) and corporate investors (15%). Institutional investors from outside of Europe contributed 12%.
Buyout fundraising increased by 71% to €56.3bn, driven by larger funds. In particular, buyout funds that reached a final close of between €250m and €1bn raised about twice as much capital than in previous years. The total amount raised by the buyout funds that reached more than €1bn at final closing was the highest since 2013.Pension funds remained the largest institutional investor in European buyout funds (41%), followed by funds of funds & other asset managers (17%), insurance companies (13%) and sovereign wealth funds (12%). North American institutional investors contributed more than a third of the capital raised.
Growth capital fundraising has established itself in recent years with a stable amount of capital raised in 2016 (€3.9bn) compared with 2015. Funds in this category range from vehicles scaling up venture capital-backed companies, to those making minority equity investments in mature SMEs, and regional development policies backed by banks or public institutions.