Investment in businesses
Reports on levels of private equity investment into European companies including splits by stage focus, syndication and sectors. Investments are shown by the location of the investment firm (Industry Statistics) and the location of the portfolio company (Market Statistics).
2016 Key Findings
The total amount of equity invested in European companies in 2016 remained stable at €52.5bn compared with 2015. The number of companies receiving investment decreased by 8% to around 5,900, 83% of which are SMEs. Over a third of the total amount invested in European companies were cross-border investments.
Venture capital investment increased by 2% to €4.3bn compared with 2015. Over 3,000 companies received investment, a reduction of 7%, which indicates a trend towards larger financing rounds. ICT (communications, computer and electronics) was the largest sector at 44% of the total venture capital investment by amount, followed by biotech and healthcare (27%) and consumer goods and services (9%).
Buyout investment decreased by 3% year-on-year to €36.5bn. Over 1,000 companies were subject to buyout transactions, a reduction of 5% compared with 2015. By investment amount, mid-market transactions increased by 25%. Large buyouts (between €150m and €300m in equity invested) fell by 17% and mega buyouts (more than €300m in equity invested) decreased by 34%. Most investment was concentrated in consumer goods and services sector (32%), business products and services (22%), ICT (16%), and biotech and healthcare (10%).
Growth investment decreased by 8% to €9.7bn. The number of companies receiving growth investments fell by 5% to just over 1,800. About 10% of the value of growth investments was directed to scale-up companies that are already venture capital backed. Most investments were concentrated in ICT (27%), business products and services (20%), consumer goods and services (20%), and energy and environment (13%).