Investing in Europe: Private Equity Activity 2023
Introduction
Invest Europe is the leading voice for private equity, venture capital, and infrastructure sectors in Europe. With over 650 members across 57 countries, managing approximately 60% of the continent's private equity and venture capital assets, these investments support 10.9 million jobs across Europe.
Fundraising
In 2023, despite a slight decline, fundraising remained robust, reaching €133 billion. This figure ranks as the third-best year ever, with €95 billion specifically for buyout funds, the second-best performance. The total capital under management reached €1,004 billion.
Investments
Investments in European companies amounted to €100 billion, marking the fourth year in the last five with such high deployment levels, aligning with 2019 figures. In terms of sector distribution, Information Communications Technology (ICT) and Biotech & Healthcare sectors received significant investments, with Energy & Environment also being a key sector for both private equity and venture capital.
Divestments
Divestments were recorded through various exit routes, including M&A transactions, IPOs, and secondary sales. These activities were concentrated across sectors, with notable participation from the Energy & Environment sector.
Methodology & Glossary
The European Data Cooperative (EDC), jointly managed by Invest Europe and national associations, collects comprehensive data on the European private equity and venture capital industry. This initiative ensures consistent, reliable statistics across the continent.
Acknowledgements
The report acknowledges contributions from over 1,150 fund managers, covering 90% of the €1 trillion in capital under management. This extensive data collection enables detailed analysis and insights into the industry trends.
Key Findings
- Fundraising: Incremental fundraising reached €133 billion, ranking third in history, with €95 billion dedicated to buyouts.
- Investments: €100 billion invested across 8,391 companies, with 85% classified as SMEs, highlighting a focus on small and medium enterprises.
- Geographical and Sector Focus: Significant investment in ICT, Biotech & Healthcare, and Energy & Environment sectors, underscoring the role of private equity in driving innovation and sustainability.
- Divestments: Active through various exit strategies, contributing to the liquidity and growth of portfolio companies.
This overview underscores the resilience and continued growth of the European private equity and venture capital industry, emphasizing its role in economic development, innovation, and job creation.
