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).
2017 Key Findings
- The total equity amount invested in European companies in 2017 increased by 29% year-on-year. At €71.7bn, it is the second highest amount on record and only 4% below the peak in 2007. The number of companies receiving investment rose 7% to almost 7,000 of which 87% were SMEs.
- Buyout investment was in line with the fundraising momentum, increasing 37% year-on-year to €51.2bn – the highest level since 2007. The number of companies backed increased by 12% to 1,171. Mega buyouts represented nearly 40% of the buyout market, tripling year-on-year to €18.2bn, the highest in over a decade. Small buyouts increased by 12% to nearly €4bn, with 701 companies backed, an increase of 9%. Mid-market and large buyouts performed similarly to 2016, accounting for close to 60% of the total buyout amount invested and 40% by number of companies. Business products and services received the highest investment amount at 29%, followed by consumer goods and services (27%), ICT (11%) and biotech and healthcare (10%).
- Venture capital investment increased by 34% to a ten-year high of €6.4bn, surpassing 2008’s amount by 13%. Nearly 3,800 companies were venture-backed: an 8% increase. Seed and start-up investments grew almost 50%, reaching €649m and €3.5bn respectively. Later stage investments grew by 17% to reach €2.3bn, the highest level since 2008. ICT was the largest sector, receiving 45% of the total VC investment amount, followed by biotech and healthcare (23%) and consumer goods and services (8%).
- Growth capital investments increased by 6% to €11.5bn. Over 2,100 companies were backed, a 4% increase year-on-year. Venture-backed companies received around 14% of the total amount. The ICT sector received a quarter of the investment amount, followed by consumer goods and services (23%), biotech and healthcare (18%) and business products and services (13%).