Private equity in Europe sees large jump

Private equity riseMore data released this week shows a verdant landscape for European private equity funds.

Private equity fundraising for investment into companies across Europe hit its highest level since 2008 last year at €74.5 billion, a 37% year-on-year increase, according to Invest Europe, a trade body.

“This data demonstrates high investor confidence in European private equity, in an otherwise low-yield global investment environment,” said Michael Collins, Invest Europe’s chief executive.

In the last four years, European private equity funds have raised over €240 billion to invest into companies in Europe — more than twice the amount raised in the four years following the financial crisis, 2009 to 2012.

Pension funds accounted for over a third of capital raised in 2016, Invest Europe said in its ‘2016 European Private Equity Activity’ report.

Over 40% of capital raised by European private equity last year came from investors outside of Europe, while a third of investments made into companies were cross-border.

Invest Europe represents European private equity and venture capital investors and was previously known as the European Venture Capital Association.

The data follows a finding from Pitchbook, which recently said European private equity deal making got of to a strong start in the first quarter of 2017.

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