“Estimated deal count points to a record year in Europe which was fueled by a pivot in monetary policy by central banks which helped finance a boom in buyout deals,” said Nicolas Moura, private equity analyst at Pitchbook, on Monday 6 January 2025. Photo: Pitchbook

“Estimated deal count points to a record year in Europe which was fueled by a pivot in monetary policy by central banks which helped finance a boom in buyout deals,” said Nicolas Moura, private equity analyst at Pitchbook, on Monday 6 January 2025. Photo: Pitchbook

In 2024, the European private equity market experienced a record-breaking year for deal count and a 33.6% surge in deal value, while fundraising remained robust and the exit market showed mixed results.

The global private equity market saw a marked rebound in 2024, with the total number of deals rising by 12% year-on-year, data firm Pitchbook reported in its 2024 annual global private equity first look, on 2 January 2024. European private equity also experienced significant expansion, with deal value increasing sharply. Pitchbook noted that this recovery signals a return to positive momentum in the sector after a period of uncertainty.

In Europe, private equity saw both deal value and deal count rise substantially. The region recorded a 33.6% increase in deal value and an 18.2% rise in the number of deals compared to the previous year. This resurgence was largely driven by a shift in monetary policy by central banks, which helped fuel a surge in buyout deals, explained Nicolas Moura, PE analyst at Pitchbook, in a press statement on Monday 6 January 2025.

Moura highlighted that the increased availability of capital and a more favourable economic environment played key roles in the robust growth of Europe’s private equity market. He further noted that the estimated deal count for 2024 marks a record year for the region.

Exits

While exits showed some signs of recovery in 2024, the market remained relatively muted compared to earlier periods. The total exit value increased by 4.7% year-on-year and exit count grew by 18.2%. However, despite these gains, the exit environment was less dynamic, with fewer than 30 private equity-backed IPOs in the year.

Notable fourth-quarter exits included the sale of Copenhagen airport to the Danish government and the sale of 2i Rete Gas in Italy to Italgas. These high-profile transactions underscore the continued activity in the exit space, though the overall IPO market remains subdued.

Fundraising

European private equity fundraising in 2024 was nearly as strong as record-setting years like 2021 and 2023, although it fell just short of establishing a new benchmark. The total capital raised was on par with the best-performing years for the region, indicating continued investor interest in private equity assets.

However, the number of new funds closed in Europe hit a decade-low, a trend that suggests the dominance of larger “megafunds” in the region’s fundraising landscape. The shift towards megafunds has been a recurring theme in recent years, as larger capital pools attract more attention from institutional investors.

Fundraising activity varied across Europe, with the Nordic region standing out as a particularly strong performer in 2024. The region outpaced its European counterparts, continuing a trend of robust capital raising. Several large funds were closed in the second half of the year, including Nordic Capital Evolution II, BlackFin Financial Services Fund IV and Forbion Growth Opportunities Fund III.

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