Invest Europe

Invest Europe, the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors, announced that Frans Tieleman, Advisor, Eurazeo, has assumed the role of Chair for 2023-2024, taking over from Dr. Klaus Hommels, Founder, Lakestar.

Invest Europe took the opportunity to offer its thanks and appreciation to Klaus – on behalf of its members and broader network – for his work to promote the industry, and focus on strengthening Europe’s investment ecosystem, promoting European sovereignty in financing and technology, and encouraging European entrepreneurship.

Frans joined the Mid Market Council in 2018 and the Board in 2021 as a representative of Eurazeo. He now serves as an advisor to Eurazeo and has other engagements in private equity investing. His current focus is investments that help decarbonise the economy.

With more than €35 billion in assets under management, including €24.7 billion from limited partners and more than 600 portfolio companies invested or funded, Eurazeo is one of Europe’s leading private equity companies.

As Invest Europe Chair, Frans will be supported by directors drawn from the association’s broad membership which represents venture capital, mid-market and global private equity firms as well as limited partners. Appointments confirmed for a three-year period until June 2026 include Torsten Grede (Deutsche Beteiligungs AG), Ingrid Teigland Akay (Hadean Ventures), Carolina Espinal (Harbourvest Partners) and Filippo Cardini (Towerbrook Capital Partners); Christina Pamberg (Alcyon Holding) and Catherine Brossard (Cerberus Capital Management) are confirmed as board members for a year until June 2024. Max Bautin (IQ Capital) has been appointed Treasurer for a 1-year period.

Frans will also work closely with CEO Eric de Montgolfier and the association’s team to promote and increase understanding about private equity and venture capital’s cornerstone contribution to Europe’s economy and society. His key priorities for the year are promoting the industry’s involvement in combating climate change and in supporting Europe’s strategic, technological and industrial sovereignty, while defending the values of diversity and inclusion. These integrate fully into Invest Europe’s current strategic objectives:

• Ensuring members’ and industry’s license to operate through public affairs deliverables that secure and broaden our influence and communication activities that actively manage the industry’s reputation
• Substantially increase research and data production to better defend and promote the industry and provide more value-add publications and services to members
• Connect industry players and generate opportunities to grow through conferences, training and networking events, and member engagement

The private equity and venture capital industry provided strong support for European businesses and workers: some 10.5 million people were employed at private equity and venture capital backed businesses across Europe in 2021, according to the fourth edition of Invest Europe’s groundbreaking Private Equity at Work report, with portfolio companies adding 6.5% more jobs – or over five times the average across Europe.

Invest Europe’s ‘Investing in Europe: Private Equity Activity 2022’ report revealed a new high level of commitment from long-term investors seeking strong returns to support European pensions and savings. A total of 801 European private equity, venture capital, and growth funds raised €170 billion in 2022, 30% above the previous record of €131 billion achieved in 2021.

Investment hit €130 billion in 2022, a decline on 2021’s peak, yet 30% above the average of the past five years, underlining the step-change in private capital investment taking place across Europe. Investments reached 0.62% of European GDP in 2022, the second highest level on record following 2021’s extraordinary investment levels.

Record fundraising in 2022 was driven by long-term investors, led by pension funds which committed 27% of the total. They were followed by sovereign wealth funds which significantly stepped up investment, achieving 15% of the total, and funds of funds – a conduit for smaller pension funds to invest in private equity and venture capital – accounting for 11% of the total. Alongside insurers, these long-term institutional investors supplied almost two-thirds of all capital raised in 2022.

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Invest Europe is the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors. We have over 650 members, split roughly equally between private equity, venture capital and limited partners – with some 110 associate members representing advisers to our ecosystem. Those members are based in 57 countries, including 42 in Europe, and manage 70% of the European private equity and venture capital industry’s €846 billion of assets under management. Businesses with private capital investment employ 10.5 million people across Europe, 4.5% of the region’s workforce.

Invest Europe, the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors, announced that Frans Tieleman, Advisor, Eurazeo, has assumed the role of Chair for 2023-2024, taking over from Dr. Klaus Hommels, Founder, Lakestar.

Invest Europe, the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors, today published ‘Investing in Europe: Private Equity Activity 2022’ – the most comprehensive and authoritative source of fundraising, investment, & divestment data, covering over 1,750 firms. The report shows a new high level of commitment from long-term investors seeking strong returns to support European pensions and savings.

• A total of 801 European private equity, venture capital, and growth funds raised €170 billion in 2022, 30% above the previous record of €131 billion achieved in 2021. Venture capital funds raised a record €23 billion, while buyout funds achieved a new high of €111 billion, and growth funds had their second-best year with €21 billion raised.
• Investment hit €130 billion in 2022, a decline on 2021’s peak, yet 30% above the average of the past five years, underlining the step-change in private capital investment taking place across Europe.

Record fundraising in 2022 was driven by long-term investors, led by pension funds which committed 27% of the total. They were followed by sovereign wealth funds which significantly stepped up investment, achieving 15% of the total, and funds of funds – a conduit for smaller pension funds to invest in private equity and venture capital – accounting for 11% of the total. Alongside insurers, these long-term institutional investors supplied almost two-thirds of all capital raised in 2022. The data also highlights the appeal of Europe to international investors looking to back world-class companies and ground-breaking innovations. Capital from North America reached 24% of total fundraising – over €41 billion – while commitments from Australia and Asia also reached 22% of the total. Over 50% of fundraising came from domestic and cross-border investors within Europe.

Eric de Montgolfier, CEO of Invest Europe, commented:

• “After reaching the high-water mark for investment in 2021, the European private equity and venture capital industry continues to reach new heights. Strong support from both inside and outside Europe demonstrates the confidence that long-term investors are placing in managers to deliver returns that can grow the pensions and savings of citizens globally.”
• “Rather than sitting on the sidelines, this capital – along with operational expertise – is going into European companies to transform mature businesses and get start-ups and growing SMEs off the ground.”

The €130 billion invested by European private equity and venture capital in 2022, marks the second-highest year for investment with over 9,000 companies backed, helping drive innovation, job creation, growth, and the transition to a greener and more sustainable economy across the continent. Funds invested over €43 billion in Information Communications Technology, making it by far the largest sector by equity invested and number of companies backed. It was followed by Consumer Goods & Services, which accounted for 16% of all companies, and Biotech & Healthcare for 15%.

Growth investment reached €29 billion and venture capital investment exceeded €18 billion in 2022, both by far the second highest levels ever recorded, as funds were mainly targeted at SMEs, which are the engine of growth and the backbone of Europe’s economy. Buyout investments in mature companies exceeded €80 billion, with mega-cap (>€300m) investments comprising equity contributions of more than €41 billion.

Invest Europe’s ‘Investing in Europe: Private Equity Activity 2022’ is part of a comprehensive library of data and reports, including ‘Private Equity at Work’ and ‘ESG KPI report: Managing what you measure’ that transparently documents the industry’s track record not only in terms of financial performance, but also its social and economic contribution to Europe.

Download the full report here.

About Invest Europe
Invest Europe is the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors. We have over 650 members, split roughly equally between private equity, venture capital and limited partners – with some 110 associate members representing advisers to our ecosystem. Those members are based in 57 countries, including 42 in Europe, and manage 70% of the European private equity and venture capital industry’s €846 billion of assets under management. Businesses with private capital investment employ 10.5 million people across Europe, 4.5% of the region’s workforce.

€170 billion raised for European investments in 2022, up 30% on 2021’s prior record and €130 billion invested across Europe, second-highest level ever achieved. Download the report covering over 1,750 firms and 94% of the €846bn in capital under management in Europe (as of end-2021).

Invest Europe, the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors, today published its Private Equity at Work report, the fourth edition of the landmark study on employment and job creation in Europe. The research shows that private equity and venture capital are outperforming in job creation, adding 6.5% more jobs across portfolio companies in the COVID recovery in 2021 – over five times the 1.2% job creation rate across Europe.

• Companies financed by private equity and venture capital added 341,910 jobs in 2021, roughly equivalent to the population of Bilbao, Spain. All segments of the industry saw strong levels of job creation, led by fast-growing venture capital-backed companies which added 25% more jobs in 2021, and followed by businesses with growth investment that added 14% more workers.
• Companies backed by private equity and venture capital employed 10.5 million people in 2021, supporting workers in over 26,000 companies in cities and regions across the continent. This figure includes nearly 900,000 people in over 18,500 SMEs, the backbone of Europe’s economy and the source of much of its future growth, adding 12% more jobs in 2021.

Invest Europe’s Private Equity at Work not only shows how the industry has outperformed the economy in 2021, but also how it has contributed to job growth during periods of economic expansion and recession. Companies backed by private capital added 431,156 more jobs at companies between 2017 and 2021, and saw an average yearly job creation of +4.4% during the period. Venture-stage companies saw the highest average yearly job creation rate during 2017-2021 (18%), while buyout-stage companies added the most jobs, with a total of 230,000 over the period. The industry continued to create jobs in the midst of the pandemic with 11,564 or 0.4% in 2019-2020. In just one year (2020-2021), the level of job creation returned to pre-pandemic levels at 5%, or +135,220.

The data reflects the strong relationship between the industry’s commitment to investment, growth and job creation and protection, as funds invested €490 billion in companies across Europe between 2017 and 2021, with €172 billion directly pledged by pension funds and insurers over the same period.

Eric de Montgolfier, CEO of Invest Europe, commented:

• “The positive impact of private equity and venture capital on employment and job creation is becoming more evident with each passing year. The industry stepped up to the mark again in 2021, helping drive Europe’s recovery from the pandemic by creating over five times more jobs than the rest of the continent’s companies.
• “From buyout-stage companies employing millions, to venture-backed start-ups and high-growth SMEs creating jobs at an exponential rate, the industry supports major employers at the heart of communities today, while paving the way for a better tomorrow with high-skilled jobs in fast-growing industries such as tech and biotech & healthcare.”

Private Equity at Work showcases the industry’s employment and job creation in sectors at the forefront of European growth and competitiveness. The large ICT and Biotech & Healthcare sectors, both employing well over 1 million people, increased jobs by 13.6% and 7.2% respectively in 2021, well above the European average.

Invest Europe’s data also highlights the industry’s strong performance in terms of job creation across all regions. The CEE was the most dynamic region for job growth in 2021, adding 10.6% more jobs, followed by the Nordics with 9.4% more employees, and the DACH region with 7.3%. France & Benelux was the largest region for private equity and venture capital jobs (3.6 million) in 2021, adding some 130,000 more jobs over the year.

Click here to read Private Equity at Work.

About Invest Europe

Invest Europe is the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors. We have over 650 members, split roughly equally between private equity, venture capital and limited partners – with some 110 associate members representing advisers to our ecosystem. Those members are based in 57 countries, including 42 in Europe, and manage 70% of the European private equity and venture capital industry’s €846 billion of assets under management. Businesses with private capital investment employ 10.5 million people across Europe, 4.5% of the region’s workforce.

The research shows that private equity and venture capital are outperforming in job creation, adding 6.5% more jobs across portfolio companies in the COVID recovery in 2021 – over five times the 1.2% job creation rate across Europe.

Invest Europe and 12 organisations, representing a broad array of industries from Europe and its leading trading partners, are calling for a framework that is both legally proportionate and operationally workable.

Read the joint statement here (PDF)

Invest Europe and 12 organisations, representing a broad array of industries from Europe and its leading trading partners, are calling for a framework that is both legally proportionate and operationally workable.

• Invest Europe releases inaugural report tracking industry progress on themes including environmental impact, female participation and combating corruption
• 659 firms, 2,100 funds and 5,895 companies captured
• 77% of surveyed firms had ESG processes, women occupied – on average – 28% of portfolio company board seats

Invest Europe, the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors, today published its inaugural Environmental, Social, Governance (ESG) Key Performance Indicator report, the first study into European private equity and venture capital fund managers’ contribution to themes including environmental impact, female participation in the workforce, and combatting corruption.

The online publication entitled ‘ESG KPI Report: Managing what you measure‘ digs into the issues that really matter to investors, policymakers and the public at large, underlining private equity and venture capital’s attention to climate change, as well as sustainable and responsible investment. Over time, the study will grow to become the benchmark for the European industry’s effort on ESG metrics.

• The ESG KPI report includes data from 659 European private equity and venture capital firms on 2,100 funds and 5,895 companies, based on measurements taken in 2021. Given the level of response the data is not representative of the European industry as a whole yet.
• The findings show that 77% of firms had ESG investment and portfolio management processes, including 90% of buyout firms, demonstrating clear and established industry-wide focus on ESG. Some 31% of portfolio companies had an Environmental Management System in place, 56% of those responding stating they were externally certified.
• Women on average held 38% of full-time equivalent roles at companies in the study and occupied on average 28% of board seats. Furthermore, on governance issues, some seven out of 10 companies had anti-bribery and corruption policies in place.

ESG KPI Report: Managing what you measure is part of an extensive programme by Invest Europe to help members address climate change, as well as key social and governance issues, and transparently show their progress. It goes hand-in-hand with the association’s ESG Reporting Guidelines to set the standard on ESG disclosures to investors and regulators, and joins an extensive library of essential materials that include our ESG Due Diligence guide and Climate Change Guide. The workstream reflects the growing headline risk of weak ESG credentials, and the opportunity for firms and companies with a strong ESG focus to outperform.

Eric de Montgolfier, CEO of Invest Europe, commented:

“Tackling climate change and standing strong on responsible investment themes, such as diversity and zero tolerance to corruption, are among the greatest responsibilities facing the European private equity and venture capital industry.“

“Managing what you measure is an important step for fund managers to track and improve their performance on critical ESG issues.”

“Every journey starts with a decisive step. Managing ESG requires effort, and we recognise that the industry has more to do. However, in time, ESG measurement and reporting will be as routine as tracking financial metrics.”

Invest Europe’s ESG KPI report is the result of collaboration with national associations involved in the European Data Cooperative. The KPIs used were based on metrics currently being used by private equity and venture capital firms across Europe. The data gathered includes specific indicators on scope 1-3 greenhouse gas emissions, the proportion of renewable energy consumption by companies, board seats held by independent directors, and cybersecurity and data privacy measures, among others.

To download and read the ESG KPI Report: Managing what you measure, please click here.

Invest Europe releases inaugural report tracking industry progress on themes including environmental impact, female participation and combating corruption

As the association representing Europe’s private equity, venture capital and infrastructure sectors, Invest Europe notes with concern the collapse, and receivership, of Silicon Valley Bank on March 10, 2023.

The impact primarily on U.S. venture capital firms and the start-ups and scale-ups they back will be significant, and this extending into the U.K. where Silicon Valley Bank UK was well established and entered into insolvency Friday March 10 according to the Bank of England.

Invest Europe welcomes the news that depositors of SVB will be able to access their money as of March 13, while the announced sale of SVB UK to HSBC will ensure the same in the U.K.

Nonetheless, Invest Europe will continue to closely monitor developments as, and if, they now affect its membership.

As the association representing Europe’s private equity, venture capital and infrastructure sectors, Invest Europe notes with concern the collapse, and receivership, of Silicon Valley Bank on March 10, 2023.

• Invest Europe unites representation of all private equity market participants

Invest Europe, the association representing Europe’s private equity, venture capital and infrastructure sectors, today announces the integration of the leading international association for listed private capital, LPeC, as Invest Europe’s Listed Private Capital Roundtable, strengthening representation for the entire private equity industry in Europe.

The integration of LPeC meets the listed private capital association’s strategic objective to increase its scale and influence, alongside Invest Europe’s goal to be a strong voice for all private equity in Europe. The agreement reflects the evolution the growing private capital industry, illustrated by the rising trend among European private equity managers to pursue stock market listings, as well as the shift to democratise access to the asset class for retail investors.

• The Listed Private Capital Roundtable will bring together listed GPs and LPs, as well as those with listed vehicles, from across Invest Europe’s four platforms: Venture Capital, Mid-Market, Global Private Equity and Limited Partners. As part of the integration, LPeC CEO Deborah Botwood Smith, will join Invest Europe’s management team from January.

Founded in 2006, LPeC has represented the leading listed private capital groups in the UK, Continental Europe and North America, as well as their advisers. Over the last decade, global listed private equity has increased six-fold in size to represent a market value of €326 billion. The combined market cap of UK and European listed firms stood at €263 billion at the end of October 2022, according to LPX data.

Invest Europe will support the listed private capital segment with increased communications, advocacy, events, data and research, as well as back-office resources. Its objectives will be to promote listed private capital through market and investor education, address regulation affecting the segment, provide networking opportunities for firms and investors, and increase understanding of the industry’s evolving investor base.

Eric de Montgolfier, CEO of Invest Europe, commented:

• “The integration of LPeC with Invest Europe brings all European private equity market participants together under one roof. It strengthens our voice and extends the reach of listed private capital at a time when many firms across the continent are considering listed structures and ways to democratise access to private markets for a broader group of individual investors.”

The decision to join forces was agreed unanimously by the boards of Invest Europe and LPeC and takes place with immediate effect.

• Invest Europe launches year of promotional activities and initiatives; new microsite

Invest Europe, the association representing Europe’s private equity, venture capital and infrastructure sectors, today launched a new microsite, the first in a series of initiatives to recognise the association’s support for the industry over the last 40 years, as well as the contribution of private equity and venture capital to Europe’s economy and society.

Over the past four decades, private capital has grown from a niche segment of the finance industry into a cornerstone of Europe’s efficient capital markets and its healthy asset management universe. Since it was founded in 1983, Invest Europe has been at the industry’s side every step of the way, through periods of economic expansion, as well as downturns and crises. It will equally be there to support the climate and digital transitions we are facing. The 40^th anniversary microsite celebrates the association’s achievements, the role of private capital in Europe today, and goals for the future.

The microsite is the first of a programme of activities scheduled for 2023. Among these are public affairs events to secure and broaden Invest Europe’s sphere of influence with policymakers, research that underlines the association’s role as a trusted point of reference on private equity and venture capital, communications to actively manage the perception of the industry, and membership activities and events to connect members and provide growth opportunities for the industry.

The microsite’s highlights also include Invest Europe’s A Different Angle film series in collaboration with BBC Global, showing how private equity and venture capital are marrying returns with purpose, and Success Stories: VC and Life Sciences demonstrating how venture capital is helping save lives and improve health and wellbeing, alongside videos and testimonials for private equity and venture capital.

Eric de Montgolfier, CEO of Invest Europe, commented:

• “As the voice of private capital, Invest Europe’s aim is to cement the industry’s position as a cornerstone of, and catalyst for, Europe’s economy and society. Our 40^th anniversary provides the platform for us to show the role private equity and venture capital is playing in a more sustainable and dynamic Europe.”
• “Across the continent, our members are building better businesses that create jobs, sustain communities, and drive economic growth, while generating value that translates into returns to support European pensioners and savers.”

Today, Invest Europe is one of the largest private capital association in the world, with over 650 members spanning private equity, venture capital and limited partners, as well as industry advisers.

Invest Europe launches year of promotional activities and initiatives; new microsite

• Funds raise €64bn in H1, in line with 2021 highs, while investment reaches €57bn
• Majority of LPs expect the same or stronger commitments over three years, as three-quarters of GPs consider “green” funds

Invest Europe, the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors, today published two reports highlighting robust industry activity in the first half of 2022, as well as continued medium-term confidence among institutional investors for private equity to deliver better pensions and a more sustainable future for Europe’s citizens.

Invest Europe’s ‘Investing in Europe: Private Equity Activity H1 2022’ provides a comprehensive look at first half data covering fundraising, investment, and divestment across Europe, as the industry contended with a more complex macro and geopolitical environment.

• Private equity and venture capital funds raised €64 billion in the first half of 2022, in line with the record six-month fundraising total achieved in 2021. Over the same period, private equity funds invested €57 billion in European companies, the third-highest six-month industry investment total ever.

Across Venture Capital, Growth and Buyout in H1, ICT remains the leading sector for investments. ICT received 49% of the total Venture investment; 41% of the total Growth investments and 32% of Buyout investments.

The H1 activity data also highlights the continued strong performance of Europe’s venture capital industry. Venture capital funds raised a record €10 billion for new investments in the first half and deployed €10.5 billion into start-ups, underlining the step change in investment behind European innovation as the industry lays the groundwork for a better tomorrow.

At the same time as providing in-depth insight into first half activity, Invest Europe has teamed up with global management consultancy firm, Arthur D. Little, to gather investor and fund manager views for the third edition of the ‘Pan-European Market Sentiment Survey 2022 – Keeping an eye on the horizon – European private equity should stay on track despite the bumpy road ahead’. The findings acknowledge the short-term challenges affecting firms – including higher inflation, supply chain disruption, rising interest rates and geopolitical instability – while highlighting the ongoing shift to, and opportunities in, ESG.

Key findings from the report suggest:

• Over 90% of LPs expect the same or higher allocations to private equity over the next three years, although over 70% of GPs see a weaker fundraising environment in the coming 12 months.
• More than 90% of GPs expect to focus more on ESG over the next 12 months, and 80% see more attention on diversity & inclusion. Three-quarters of GPs see advantages in registering “green” funds, echoed by a similar proportion of LPs expecting greener funds as a result of new regulation.

Jonas Fagerlund, Partner at Arthur D. Little says:

• “Understanding, embracing, and delivering on ESG represents one of the greatest challenges for the private equity industry. It is one that GPs are addressing, with the vast majority placing greater attention on ESG factors, as well as issues surrounding diversity and inclusion. It is clear this is not a short-lived intention but rather a secular shift, with many GPs looking at the creation of “green” funds that would set a very clear direction for the industry for years and decades to come.”

The H1 Private Equity Activity data and the Private Equity Sentiment Survey take a wide-ranging look at activity across regions, sectors and investment types. While GPs expect a more challenging outlook for new investment over the next 12 months, a majority expect more investment in renewable energy, as well as life sciences & healthcare. Investment types are also evolving with more public-to-privates and corporate carve-outs expected than this time last year.

Eric de Montgolfier, CEO of Invest Europe, commented:

• “European private equity has shown characteristic strength in traversing a volatile period already in 2022. Despite expectations for more short-term uncertainty, over the longer term, the industry is preparing for a greener and more inclusive future, incorporating ESG factors even more firmly at its core, with the full support and commitment of investors.”

To access both the H1 Private Equity data and the Private Equity Sentiment Survey please click here.

We at Invest Europe applauds the agreement found by EU policymakers on the revision of the European Long Term Investment Regulation (ELTIF).

The revision will make it easier for long-term fund managers to set up ELTIF structures and hence offer them a safe and credible marketing label to offer their products to non-professional clients across the EU. This will be at the benefit of both the retail investors looking to invest capital in long-term projects and the companies that need such capital to grow and contribute to the sustainable and digital transitions” says Eric de Montgolfier, CEO of Invest Europe “The agreement today is a momentous step towards the democratisation of all long-term asset classes, and of private equity in particular.”

Among the most fundamental changes introduced as part of the deal reached yesterday are the opening of ELTIF to fund-of-fund structures as well as the ability of ELTIFs to invest in fintechs. The final compromise also streamlines and simplifies the conditions under which retail investors can access these funds. It introduces a series of changes, on liquidity or borrowing, which will give additional flexibility for ELTIF managers to operate their funds. Thanks to a clarification of the conflict-of-interest rules, private equity, venture capital and infrastructure fund managers will also be able to co-invest alongside their funds.

Martin Bresson, Invest Europe Director of Public Affairs, adds “The ELTIF review is a testimony of how a, so far, underused voluntary passport can be improved thanks to collaboration between lawmakers and the industry. We’ve been extremely pleased with how constructive discussions have been with the European Commission, European Parliament’s Rapporteur Michiel Hoogeveen and the French and Czech Presidency of the Council and we are very impressed with the capacity for making the right compromises to improve the functioning of the passport while maintaining high standards of investor protection.