Investing in Europe: Private Equity Activity 2023 (Invest Europe)

Summary

• Total fundraising in Europe during 2023 reached €132.9bn, representing a 3% decline from the previous five-year average, with 744 funds raising capital.p.8
• A total of 242 funds reached their final closing during 2023, raising €137bn since inception, the highest amount recorded at final closing in any year.p.8
• Total equity invested in European companies reached €99.8bn in 2023, a 25% decrease from 2022, across 8,391 backed companies of which 85% were SMEs.p.8
• Venture capital investment totaled €12.9bn in 2023 across 4,764 companies, led by the Start-up stage receiving €6.4bn or 49% of total venture investment.p.8
• Divestments at cost in 2023 reached €30.6bn, a 15% decrease from the previous year, covering 3,094 exited European companies.p.8
• Sale to another private equity firm was the primary exit route by value in 2023, representing 35% of total divestments at cost.p.8

Key insights

1. North America was the top geographic source of fundraising for European private equity in 2023, contributing 23.4% of total capital raised.p.27
2. Pension funds remained the single largest source of capital for private equity fundraising in 2023, accounting for 24% of total commitments.p.22
3. Government agencies provided 37% of total funds raised by venture capital funds in 2023.p.22
4. ICT was the largest sector by investment amount in 2023, representing 24.6% of total equity invested in European companies.p.59
5. SMEs accounted for 85% of all companies receiving private equity and venture capital investment in Europe in 2023.p.62
6. Buyout divestments at cost totaled €22.4bn across 662 companies in 2023, reflecting an 8% decline compared to 2022.p.64
7. Growth divestments at cost dropped 35% year-on-year in 2023 to €5.3bn across 1,350 divested growth companies.p.64
8. Total private equity investments represented 0.44% of European GDP in 2023 based on the firm location.p.50