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Market Overview

The Europe private equity market was valued at USD 432.8 Billion in 2025 and is projected to reach USD 619.3 Billion by 2034, growing at a CAGR of 3.94% during the forecast period 2026-2034. The market expansion is driven by robust deal flow in sectors such as technology, healthcare, renewable energy, and consumer goods, along with increased capital availability. Enhanced focus on technology investments, ESG-compliant funds, and mid-market buyouts further stimulate market growth.

Study Assumption Years

• Base Year: 2025
• Historical Years: 2020-2025
• Forecast Period: 2026-2034

Europe Private Equity Market Key Takeaways

• Current Market Size: USD 432.8 Billion in 2025
• CAGR: 3.94% from 2026 to 2034
• Forecast Period: 2026-2034
• The market is expanding due to strong deal activity across technology, healthcare, and renewable energy sectors.
• Increased availability of capital is boosting investment opportunities in diversified schemes such as mid-market buyouts and venture capital.
• Technology investments focus on fintech, artificial intelligence, cybersecurity, and digital transformation.
• There is a growing emphasis on ESG-compliant investments supported by regulatory frameworks like the EU Green Deal.
• Mid-market buyouts are rising, driven by SME growth capital needs and cross-border acquisitions.

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Market Growth Factors

The Europe private equity industry has also benefited from strong deal flow in other industries, including technology, healthcare, renewables, and consumer products. For example, in December 2024, EQT Exeter acquired logistics assets from M&G Real Estate for more than GBP 100 million, strengthening its presence in the logistics sector. The most invested sectors include technology, largely due to demand in digital transformation, fintech, artificial intelligence, and cybersecurity. Healthcare attracts investment for its defensive nature and biopharmaceuticals and telehealth. The expansion of renewable energy sources is motivated partly by European sustainability goals and regulatory requirements as well as the high potential returns on capital.

Supply of capital is growing, and there is a strong confidence among investors. Institutional investors such as family offices, fund-of-fund managers and HNWIs are increasing their commitments to private equity due to more attractive returns than publicly-traded investments. Financing conditions also remained favorable, with low interest rates encouraging leveraged buyouts and growth investing. In December 2024, BlackRock opened private markets funds for high-net-worth individuals with a minimum investment as low as €10,000 in private equity, private debt and infrastructure, allowing individuals to invest in private markets via diversified portfolios.

The final trend is the growing appeal of mid-market buyouts, as many SMEs are seeking growth capital. In 2024, European mid-market buyouts were worth over €14 billion ($15.6 billion), and listed companies were favored acquisition targets. Buyouts can add value through operational improvements, digitalization, and regional expansion. In addition, improved financing structures and increasing cross-border M&A activity have made SMEs an attractive target for private equity as they have more flexibility to customize the investment.

Market Segmentation

Analysis by Fund Type:

• Buyout: Focuses on acquiring controlling stakes in mature businesses to enhance operations and drive growth, supporting corporate restructuring and expansion.
• Venture Capital (VCs): Provides early-stage funding for startups and high-growth firms in technology, healthcare, and renewable energy, fostering innovation and market entry.
• Real Estate: Concentrates on acquiring, developing, and managing commercial, residential, and industrial properties, benefiting from demand for sustainable development and urban infrastructure.
• Infrastructure: Invests in essential assets like transportation, energy, and telecommunications, supporting sustainable projects aligned with the EU Green Deal.

Regional Insights

Germany is a dominant player in the Europe private equity market, known for its strong industrial base and innovation, especially in automotive, technology, and healthcare sectors. With a robust economy, skilled workforce, and sustainability focus, Germany supports various private equity activities including buyouts, growth capital, and venture investments, making it a central hub in the region.

Recent Developments & News

In June 2024, KKR acquired Superstruct Entertainment for $1.4 billion (€1.3 billion), gaining ownership of over 80 music festivals across Europe and Australia. In April 2024, CVC Capital Partners planned to sell over 100 million shares ahead of an IPO on the Amsterdam Stock Exchange, targeting a valuation between €13 billion and €15 billion, marking a significant strategic milestone.

Key Players

• EQT Exeter
• M&G Real Estate
• BlackRock
• Nordic Capital
• 360 Capital
• EQT
• Battery Ventures
• KKR
• Providence Equity Partners
• CVC Capital Partners

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