Invest Europe

New Invest Europe report highlights venture capital’s role in supporting pioneering European life sciences start-ups

  • VC invested €13.5bn in over 2,600 Biotech & Healthcare start-ups in the last five years

  • Late-stage Life Sciences start-ups increased employment by 20% in 2021

Invest Europe, the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors, today published VC Success Stories Across Life Sciences in Europe. The new study shines a light on investment and employment in the sector at the heart of public health in Europe, and presents a large library of case studies of Biotech start-ups breaking new ground in the fight against cancer and other life-threatening conditions.

  • Venture capital firms backed 2,634 start-ups with €13.5 billion of capital over five years to the end of 2021, accounting for almost 25% of all VC investment. VC investment in European Life Sciences increased for ten successive years from 2012, rising four-fold to €3.9 billion in 2021.

  • All private equity and venture capital backed Biotech & Healthcare companies in Europe employed almost 1.3 million people in 2020. The late-stage VC segment employed 56,867 people and was one of the fastest growing, increasing employment by 20% between 2019 and 2020.

The digital report combines comprehensive Invest Europe data with real-life studies into European start-ups past and present that are reshaping the Life Sciences sector across the continent. It presents a wide-ranging library of case studies, covering segments from Biotechnology Therapeutics and Medical Devices to Diagnostics and Digital Health, to demonstrate the power of venture capital investment and expertise in the fight to save lives and improve health outcomes for millions of people in Europe and across the globe.

The report highlights Europe’s long history in Biotech innovation, thanks to leading universities and research institutes, a strong focus on R&D, and world-beating talent. It includes Ablynx, the ground-breaking Belgian start-up pioneering treatments with nanobodies, acquired by Sanofi in 2018 for over €3.9 billion and which created over 450 jobs. It highlights BioNTech, the German champion that led the development of the first COVID-19 vaccine to be approved for use in Europe and the US, and which listed on the Nasdaq in 2019 at a valuation of €3.1 billion.

Young companies that are still developing life-changing treatments and technology are also included. Thanks to its late-stage VC backing, Denmark’s Ascendis Pharma, which produces improved patentable versions of existing drugs, almost tripled employee numbers in just three years. And SOPHiA GENETICS, headquartered in Switzerland, is using AI and machine learning to revolutionise how healthcare practitioners devise treatments for patients. The company now employs over 500 highly skilled staff.

Eric de Montgolfier, CEO of Invest Europe, commented:  

  • “The pandemic lifted the lid on the European Life Sciences sector. Yet despite the recent attention, this has always been a sector with a rich history of ground-breaking start-ups. Our latest study highlights the role venture capital has long provided in backing innovative European Biotech companies and creating high-skilled jobs across the continent.”

Rainer Strohmenger, Managing Partner at Wellington Partners, added:

  • “European biotech start-ups are devising new treatments for cancer, life-changing medical devices, and ground-breaking technology. Venture capital is essential to help these companies develop their products and become world leaders in their fields. European Life Sciences is a dynamic sector that is making a difference to millions of lives around the world.”

Invest Europe’s Life Sciences report joins an extensive library of research that highlights European private equity and venture capital’s cornerstone role in Europe’s economy and society. It was created thanks to the input of Invest Europe’s Venture Capital Platform Council, led by Rainer Strohmenger.

Click here to read VC Success Stories Across Life Sciences in Europe and browse our online case studies.

ESG reporting guidelines for the European private capital industry

Practical guidance, detailed insights and concrete ESG recommendations for practitioners of all sizes across Europe

  • Invest Europe’s landmark publication includes practical guidance, detailed insights and concrete ESG recommendations for practitioners of all sizes across Europe

  • Non-mandatory guidelines produced with the help of more than 50 industry practitioners and advisers from across Invest Europe’s membership in the EU and beyond

The comprehensive and unique guide helps the private capital industry navigate sustainability reporting. It was presented at a virtual launch event, providing much-needed clarity on a topic that’s critical to the private equity and venture capital industry.

With €846 billion of assets under management and private capital-backed firms totalling 10 million people employed in Europe, private equity and venture capital has the critical mass to help make a difference in the move towards net-zero.

To support these firms, regardless of where they are on their environmental, social and governance (ESG) journeys, the Invest Europe guidelines aim to create the most advanced and user-friendly guidance for private equity and venture capital firms across Europe.

They contain:

  • Direction for firms on how to integrate ESG into their reporting processes throughout the investment life cycle

  • Practical guidance on how to develop an ESG policy and how to assess materiality

  • Detailed mapping of the pan-European regulatory framework, as well as existing standards and frameworks

  • A voluntary reporting template for firms to use, including a list of ESG metrics in line with regulatory requirements and voluntary initiatives

The non-mandatory guidelines have been produced with the help of more than 50 industry practitioners and advisers from across Invest Europe’s membership in the EU and beyond. They are based on industry surveys to ensure that the reporting guidance and recommendations reflect not only current market practices and the realities facing fund managers, but also the expectations and needs of investors.

Eric de Montgolfier, CEO of Invest Europe, commented:

  • “By creating guidelines for ESG reporting, Invest Europe proudly provides transparency, clarity, and harmony to this space – benefiting European firms, their investors, and stakeholders more broadly.”

  • “Invest Europe’s ESG guidelines are designed to develop over time as the ESG landscape continues to evolve rapidly. They are exhaustive enough to be immediately useful to the industry while being sufficiently flexible to accommodate modifications that can ensure future-proof guidance.”

A copy of Invest Europe’s Members-only ESG guidelines can be accessed here. Please reach out to us for further details.

Proven performance: European private capital continues to outshine public markets in 2021 as economies recover from pandemic

  • European Buy-Outs IRR strengthens to 15.59%, beating MSCI Europe index return of 6.41%

  • European VC returns 35.51% and 24.77% over five- & ten-year horizons, eclipsing North America

Invest Europe, the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors, today published ‘The Performance of European Private Equity Benchmark Report 2021’, its third annual transparent study of private equity and venture capital returns. The research shows that European private capital continued to strongly outperform listed equity benchmarks, delivering superior performance to long-term investors to support pensions and savings as markets rebounded from the effects of COVID-19.

  • European Buy-Outs delivered a IRR of 15.59%, over 900 basis points ahead of the 6.41% return for the MSCI Europe, since inception to the end of 2021.

  • European Growth Capital generated the strongest returns since inception of any private equity segment with an IRR of 16.03% to the end of 2021, ahead of both the MSCI Europe which returned 8.35% and the S&P Europe Small Cap Growth Index with returns of 12.68%.

  • Over the medium and shorter term, European Venture Capital performs particularly strongly, generating IRRs of 35.51% over five years and 24.77% over ten years, highlighting greater experience among managers and improved returns from later funds following the ICT bust era.

The Performance of European Private Equity Benchmark Report 2021 demonstrates the persistent performance of European private equity and venture capital, underlining the industry’s maturity and strong contribution to investors’ portfolios. It compares European funds with their international counterparts to show that European fund managers routinely deliver performance on a par with North American funds, while regularly beating funds from the Rest of the World.

Eric de Montgolfier, CEO of Invest Europe, commented:

  • “In periods of recovery and times of crisis, European private capital – whether it be buy-outs of mature companies, growth investment for dynamic, fast-growing businesses, or venture capital for innovative start-ups – significantly and consistently outperforms listed equity benchmarks.”

  • “European private equity and venture capital are a world-class investment ecosystem that supports companies with capital and expertise to grow, delivering superior returns to pension funds and other long-term investors, helping them secure pensions and savings for European citizens. As such, it’s a cornerstone of Europe’s economy and society.”

The performance benchmark data reflects the growing scale and influence of European private capital highlighted in Invest Europe’s recently published report ‘Investing in Europe: Private Equity Activity
2021’. Performance track records are helping drive record capital commitments with European private equity raised €118 billion in from investors in 2021. That capital is flowing into companies with ever-greater vigour, with €138 billion invested in start-ups, fast-growing SMEs and leading multinationals last year.

The Performance of European Private Equity Benchmark Report 2021 analyses data from some 720 Europe-focused private equity, growth capital and venture capital funds to generate deep insights into industry performance. European Buy-Out funds distribute capital faster than anywhere else in the world, returning cash to investors in under four years, compared with North American and Rest of the World funds that take almost five years. Mid-market Buy-Outs performed best in the segment, with IRRs of 17.13%, a full 950 basis points ahead of the MSCI Europe.

The research also finds that European Growth Capital funds have delivered consistent performance in benign market conditions, with IRRs ranging from 16.11% over a 25-year horizon to 19.04% over ten years. Meanwhile, European Venture Capital funds create the strongest multiple of invested capital returns to investors, returning investors 2.53x their money, compared with 2.39x for North American funds.

Read the Invest Europe member-only study: ‘The Performance of European Private Equity Benchmark Report 2021’

Private equity invests in record 672 CEE companies in 2021

  • Capital invested more than doubles to record €4.15bn, while fundraising and exits strengthen

  • Record year for venture capital investment and fundraising

Invest Europe, the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors, today published its 2021 Central and Eastern Europe Private Equity Statistics. The research shows that the number of companies receiving investment in the region increased by 11% from last year’s record to 672, underscoring the rapid step up in private equity and venture capital activity across the broad, varied and fast-growing CEE region.

  • Private equity and venture capital invested €4.15 billion in equity in CEE companies in 2021, a new record for the region and far ahead of the €1.8 billion invested in 2020, with 38.5% of capital flowing into the dynamic Information Communication Technology (ICT) segment.

  • Venture capital and growth investing drove the increase in investment levels, with a record 541 companies receiving €659 million in VC funding, and 90 businesses receiving €1.8 billion in growth investment, quadrupling 2020’s levels.

The 18th annual edition of the Central and Eastern Europe Private Equity Statistics, produced in partnership with Gide Loyrette Nouel, delves into countries across CEE to show the spread of private equity and venture capital activity, as well as development of regional powerhouses.

Investment in Poland climbed sharply on previous years to almost €1.2 billion in 2021, while 241 companies received investment in Hungary, reflecting the country’s leading position as a regional start-up hub. Estonia led investment as a percentage of GDP for all Europe with private equity investment representing 1.6% of its economic output.

Bill Watson, Chair of Invest Europe’s Central and Eastern Europe Taskforce, commented:

  • “Russia’s war against Ukraine has brought a renewed and very different focus on the Central and Eastern Europe region, creating catastrophic humanitarian, economic and geopolitical consequences. Yet, CEE remains a dynamic market, packed with entrepreneurial start-ups, maturing businesses with international ambitions, and highly educated and skilled individuals determined to make a positive mark.”

Eric de Montgolfier, CEO of Invest Europe, added:

  • “Private equity and venture capital can be a strong catalyst for company transformation, economic growth and social development. The CEE region is only starting to tap into its huge potential. Our industry is playing an essential role in supporting businesses through a challenging period, while helping them take advantage of opportunities ahead.”

It was also a strong year for exits and fundraising, underlining the maturity of the private equity ecosystem in CEE. A record 173 CEE companies were divested in 2021, representing almost €1.5 billion at historical investment cost. Poland was the leading market for exits, both by value and number of companies, yet activity was more evenly spread than in previous years with four countries, including Lithuania, Czech Republic and Romania, recording exits in excess of €100 million at investment cost.

Fundraising enjoyed its second-best year since the financial crisis, increasing by 33% to €1.75 billion, driven by government agencies in the region, as well as local institutional and private investors predominantly in the Baltic states and Czech Republic. Venture capital fundraising hit a new record of €832 million, accounting for 47% of total CEE fundraising, feeding investment in innovation across the region.

To download a copy of the 2021 Central and Eastern Europe Private Equity Statistics, please click here.

Dr. Klaus Hommels of Lakestar: Invest Europe Chair

Board appointments from Argos Wityu, Forbion, Hadean Ventures and Hermes GPE

Invest Europe, the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors, announced that Dr. Klaus Hommels, founder of Lakestar, has assumed the role of Chair for 2022-2023, taking over from Anne Fossemalle, Director, Equity Funds at the European Bank for Reconstruction and Development.

Invest Europe took the opportunity to offer its heartfelt thanks to Anne – on behalf of its members and broader network – for her tireless work to promote the industry, and its contributions to Europe’s economy and society ‘as a force for good.’

Klaus is one of Europe’s leading business angels and venture capitalists and was an early investor in European technology champions including Spotify, Klarna, Sumup and Revolut, as well as international leaders Airbnb and Facebook. He founded Lakestar in 2012 after previously running his own venture capital fund Hommels Holding.
As a passionate advocate on behalf of the European tech ecosystem Klaus is also a founding member of think-tank initiatives including the Internet Economy Foundation and the European Center for Digital Competitiveness in Berlin. Klaus holds a Master’s in Business Administration from the University of Fribourg in Switzerland and holds a PhD in Finance from the same university.

As Invest Europe Chair, Klaus will be supported by directors drawn from the association’s broad membership which represents venture capital, mid-market funds, large buyouts and limited partners. Appointments confirmed for a three-year period until June 2025 include Louis Godron (Argos Wityu), Sander Slootweg (Forbion), Ingrid Teigland Akay (Hadean Ventures) who is confirmed as board member for a year until June 2023, and Elias Korosis (Hermes GPE).

Klaus 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 priorities for the year to June 2023 include:

1. Drawing on Invest Europe’s position as the voice of European private equity to propose and drive forward measures to strengthen Europe’s investment ecosystem for all participants, and the economy more broadly.

2. Promoting European sovereignty in financing and technology by advocating a step change in equity capital to bridge the funding gap for European industry, and helping identify core technologies to ensure Europe’s digital and technical sovereignty.

3. Supporting and encouraging European entrepreneurship through alignment with European policy and regulatory objectives, as well as the financial sector.


The private equity and venture capital industry provided strong support for European businesses and workers throughout the COVID-19 crisis and economic recovery. Almost 10 million people were employed at private equity and venture capital backed businesses across Europe in 2020, according to the third edition of Invest Europe’s groundbreaking Private Equity at Work report, with portfolio companies adding 2% more jobs during a challenging period when the overall European workforce contracted by 1.6%.

The industry participated fully in the subsequent economic rebound as firms invested €138 billion in companies throughout the continent, ranging from fledgling SMEs to mature multinationals, a new record and a 51% increase on the previous year. Within that total, investment to support innovation boomed as venture capital funding for start-ups reached €20 billion and growth investment hit €35 billion, both all-time highs.

Private equity’s ability to generate strong returns for pension funds and other long-term investors, that in turn support European citizens’ retirements and savings, is also drawing record levels of capital into the industry. Private equity funds attracted €118 billion in new capital in 2021, with record levels of fundraising also seen by venture capital and growth funds. Total fundraising for the last five years exceeds €525 billion, providing the industry with abundant capital to invest in new companies and support existing businesses through ongoing economic, social and geopolitical challenges.

Record capital under management for European PE

  • Capital under management more than doubles since 2016 to reach new heights
  • Dry powder of €348bn provides increased investment capacity to support European companies

Invest Europe, the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors, today published Positioned for the Challenge: Capital Under Management & Dry Powder 2022, which shows the European private equity and venture capital industry’s step up in scale and investment capacity, achieving new records for both capital under management and dry powder.

  • Private equity and venture capital managed a record €1,004 billion in capital on behalf of investors at the end of 2022, up from €873 billion in 2021, the first time the European industry has broken through the €1 trillion threshold. Of the total, €656 billion represented portfolio value at original investment cost, held by 2,863 firms across 8,140 funds, underlining the expansion of the industry.
  • Private equity and venture capital dry powder reached €348 billion in 2022, equating to 94% of the total equity invested by the industry between 2020 and 2022, underscoring the balance between investment capacity and the opportunities. Buyout investment potential increased to €219 billion in 2022. European venture capital dry powder also rose to a record high of €53 billion, giving the industry increased capacity to support dynamic and innovative start-ups across the continent.

Now in its fourth year, Invest Europe’s Capital Under Management & Dry Powder tracks the strong and sustainable growth of the European private equity and venture capital industry, with capital under management more than doubling since 2016, as long-term investors allocate more capital to opportunities in world-leading European businesses, fast-growing scale-ups, and groundbreaking innovators.

Eric de Montgolfier, CEO of Invest Europe, commented:

  • “The European private equity and venture capital industry continues to scale new heights, demonstrating its growth potential and appeal to investors. The industry’s story is as straightforward as it is compelling. Capital committed to skilled and experienced European private equity managers helps build better businesses that can generate value and superior returns. This steady creation of capital and wealth fuels a virtuous circle that benefits Europe’s economy and society.”
  • “Ever since the outbreak of COVID, European businesses have weathered extreme challenges and uncertain markets. Private equity has demonstrated its ability to support companies through volatile conditions and the growth in dry powder – from large buyouts to venture capital – means the industry is well-equipped to help companies face the challenges of today and tomorrow.”

Invest Europe’s Capital Under Management & Dry Powder report finds that pension funds accounted for 27% of all uncalled commitments at the end of 2022, followed by fund of funds and other asset managers – often conduits for smaller pension funds – on 18%, a clear sign of the long-term investors’ confidence in the asset class and its potential to support better retirements for European citizens. Family offices and private individuals represented 13% of dry powder capital.

The report analyses data by region, funds size and fund type, and also investigates the relationship between successor funds from established managers and first-time funds from new managers. It shows that successor funds account for 89% of dry powder and 78% of portfolio at cost, while also highlighting the consistent growth of first-time funds, which achieved €182 billion of capital under management in 2022. Since 2013, 1,690 new first-time funds have entered the market.

To download a copy of Positioned for the Challenge: Capital Under Management & Dry Powder 2022 (members-only), please click here.

Invest Europe opens its ESG Reporting Guidelines

  • Invest Europe makes publicly available its ESG Reporting Guidelines and revised template
  • European Investment Fund, AP2, France Invest endorse guidance

Invest Europe, the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors, is making its ESG Reporting Guidelines available to the entire private equity and venture capital community – previously only available to members – giving all firms best practice guidelines for reporting ESG aspects and metrics, policies and practices, enabling long-term investors to access sustainability information on their investments.

  • Invest Europe’s ESG Reporting Guidelines comprise a revised template for reporting to limited partners, including a list of recommended ESG metrics in line with regulatory requirements, voluntary initiatives, and investors’ needs. The Guidelines include direction for firms on integrating ESG into reporting processes throughout the investment lifecycle, and information on developing an ESG policy and assessing materiality. They also contain an extensive mapping of the pan-European regulatory environment, as well as existing standards and frameworks.
  • The Guidelines have already received broad industry recognition, with endorsement by the EIF, AP2 and France Invest. A range of general partners have already started using the template as their preferred format for sustainability reporting.

Invest Europe created the ESG Reporting Guidelines in 2022 with the support of more than 50 industry and ESG experts from Europe and beyond, initially making the template and guidance available to Invest Europe members to gather experiences and feedback. The aim of extending the Guidelines and template to the entire industry is to strengthen and accelerate momentum towards codification and harmonisation of ESG reporting, making the process easier for GPs, and the data more comparable and scalable for LPs.

The broad availability of the industry-leading Guidelines comes as the climate crisis reaches unprecedented levels, leaving no sector of activity unaffected and increasing pressure on businesses to step up efforts to tackle carbon emissions. Other topics, such as the participation of women in key roles and diversity in the workforce, are also generating attention from long-term investors and the public at large, driving greater action by private equity and venture capital firms.

Eric de Montgolfier, CEO of Invest Europe, commented:

  • “ESG and the climate crisis are among the biggest and most complex issues facing the industry today. Our ESG Reporting Guidelines provide much-needed clarity and practical guidance on incorporating and reporting on essential ESG topics. By extending availability of the Guidelines, we aim to increase harmonisation across the industry and create a new benchmark for ESG reporting, helping the industry to participate fully in the drive to a more sustainable future.”

When reporting according to recommended metrics, fund managers can leverage Invest Europe’s logo to signal that reporting is in line with industry norms. The revised ESG reporting template also includes additional metrics for those firms that wish to go further in their reporting to satisfy voluntary standards, investor demands, or to expand ESG data coverage.

Leading institutions, investors, fund managers, national associations and ESG solutions providers have given their support to the new Guidelines, paving the way for widespread adoption across the industry.

Marjut Falkstedt, Chief Executive Officer, European Investment Fund, commented:

  • “Tracking the performance of our investments is important for us. At the EIF, we want to contribute to the overall efforts of generating understandable and comparable metrics, so that ESG considerations can be leveraged towards achieving the policy goals of a more sustainable and inclusive Europe. We’re pleased about Invest Europe’s initiative for this ESG reporting template, helping to pave the way for a harmonised approach across the European venture capital and private equity industry.”

Anders Strömblad, Head of Alternative Investments, Andra AP-fonden/AP2, added:

  • “This guidance and the reporting template constitute a big leap forward for the entire private equity industry. Consolidation and harmonisation of reporting on ESG will save time and resources and – more importantly – facilitate data-driven ESG decisions for both GPs and LPs. By also securing coherence with international initiatives, the Invest Europe guidance and template also forms the most solid steppingstone for global consistency in ESG reporting.”    

Alexis Dupont, Managing Director, France Invest, said:

  • “Embracing sustainable investment and addressing climate change informed France Invest’s national pioneering work on ESG reporting harmonisation. A common approach at the EU-level is required, with Invest Europe’s ESG Reporting Guidelines now setting a new global ‘gold standard’ for ESG reporting to investors. France Invest is delighted to support the initiative, and promote these Invest Europe guidelines in France.”

The ESG Reporting Guidelines are part of an extensive library of ESG and sustainable investing resources created by Invest Europe to help managers and investors to understand and navigate this crucial topic. They include our Guide to ESG Due Diligence for Private Equity GPs and their Portfolio Companies, our Climate Change Guide, and the ESG KPI Report which tracks industry efforts across a range of ESG topics.

European PE returns widen lead over public markets in 2022

Invest Europe, the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors, today published ‘The Performance of European Private Equity Benchmark Report 2022’, its fourth annual study of private equity returns. The research reveals that European private equity’s long-term outperformance over listed equity benchmarks widened in 2022, as the asset class continued to deliver superior returns to long-term investors in a period when global markets weakened under pressure from inflation and interest rate rises.
  • European Buy-Outs delivered a net IRR of 15.17%, over 950 basis points ahead of the 5.52% return for the MSCI Europe to the end of 2022. Mid-market Buy-Outs, European private equity’s engine room, generated the best performance of the segment with a net IRR of 16.55%, almost 10 percentage points ahead of the benchmark over the same period.
  • European Growth funds maintained the strongest returns since inception of any segment with a net IRR of 15.34% to the end of 2022, increasing its strong lead over the MSCI Europe which returned 6.03% over the same time frame. European Growth funds narrowed the gap on North American funds with strong net IRRs of 21.63% over three years and 20.39% over five years, underlining increasing industry maturity and strengthening performance from European scale-ups.
  • Over medium to long time horizons, European Venture Capital continued to perform strongly and eclipsed North America with net IRRs of 31.44% over five years and 23.07% over ten years. Returns for up to the 20-year mark are now ahead of the North American peer group, demonstrating the strength of Europe’s VC ecosystem and the growth trajectory of the continent’s start-ups.

While it focuses on the consistent long-term rewards available to investors, The Performance of European Private Equity Benchmark Report 2022 also highlights the short-term outperformance of the asset class in turbulent markets. European Buy-Outs delivered a modestly negative net return of -1.69% in 2022, with growth funds also only down by single digits, reflecting underlying portfolio companies’ resilience to market conditions and managers’ focus on operational excellence. The result helped underpin relative returns for investors including pension funds and insurers, offsetting public market volatility and a European equity benchmark which registered a double-digit decline.

Eric de Montgolfier, CEO of Invest Europe, commented:

  • “Whether it’s over the short-term or long time horizons, European Buy-Outs, Growth and Venture Capital significantly outperform listed equity benchmarks. That is why pension funds and insurers, as well as other long-term investors, rely on private capital investments for superior and consistent performance that can support citizens’ retirement funds and savings.”
  • “Not only does European private equity consistently beat public equity benchmarks, but it also compares favourably with returns from other private equity ecosystems around the world. The industry is creating and sustaining European champions, from dynamic start-ups to mature multinationals, and in doing so is supporting Europe’s economy and society with innovation, employment and growth.”

The strong performance to the end of 2022 reflects the growing support of institutional investors from around the world for European private equity, its experienced home-grown managers, and unique pool of world-class businesses. Invest Europe’s recently published Investing in Europe: Private Equity Activity 2022 tracked €170 billion of private equity fundraising last year, a new industry record, with almost half of all commitments coming from investors outside of Europe, including 25% from North America.

The Performance of European Private Equity Benchmark Report 2022 draws its findings from an ever-richer data set, analysing information on more than 750 European funds to deliver deep industry insight. The report presents European Buy-Outs, Growth and Venture Capital performance in terms of IRR, as well as multiple of invested capital to demonstrate net cash returns to investors. It also highlights the time to liquidity, showing that European Buy-Outs distribute capital faster than anywhere else in the world, returning cash to investors in under four years.

CEE VC investment achieves new record in 2022

Invest Europe, the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors, today published its 2022 Central and Eastern Europe Private Equity Statistics. Coming off a record setting 2021, the research highlights the resilience and innovation at work across the region amid a challenging global and regional environment. It reports that CEE venture capital investment hit a new all-time record and the number of buyouts reached a new peak.

  • Venture capital investment achieved its highest ever result at €821 million in 2022, a 13% increase on the previous record of 2021, with 451 companies receiving funding. The figure represents a ten-fold increase on the level of investment just ten years ago. CEE venture capital was the largest segment for fundraising, accounting for 44% of total capital commitments, with the €708 million, raised in line with the five-year average for the region.
  • By number of companies, buyouts increased strongly to 64 in total, a record for the region. The absence of larger transactions meant that total private equity and venture capital investment declined from 2021’s record to €2.77 billion, 12% below the five-year average for CEE.

The 19th annual edition of the Central and Eastern Europe Private Equity Statistics, produced in partnership with Gide Loyrette Nouel, also illustrates the growing support of private individuals and family offices who stepped up their commitments to represent 23% of total fundraising in 2022, up from 14% the previous year, an important sign of the development of the region’s investor base and the continued confidence of private investors in CEE’s future. Government agencies continued to play an important role, providing 33% of the funds raised. Total fundraising declined from 2021 levels to €1.62 billion, in-line with most of the previous five years even in the face of the threat, then outbreak, of war in Ukraine.

Bill Watson, Chair of Invest Europe’s Central and Eastern Europe Taskforce, commented:

  • “Central and Eastern Europe remains a resilient and dynamic market. Its strong entrepreneurial spirit, deep pool of technical talent, and the ambition of its hard-working people continue to deliver, supported by the catalytic powers of private equity and venture capital investment and expertise. Together, we are innovating and creating the CEE business champions of tomorrow.”

Eric de Montgolfier, CEO of Invest Europe, added:

  • “Despite the obvious challenges, the fundamental and unbroken economic drivers of increasing incomes, continued foreign investment, and CEE’s dynamic, internationally integrated marketplace continue to generate investment opportunities. Private equity has a critical role to play in shaping the region’s business and investment environment, and deserves the full attention of institutional investors.”

The region’s strength in high-growth industries at the forefront of innovation and growth was reflected in the companies and sectors receiving investment in 2022. The Information & Communications Technology (ICT) sector represented over half the businesses backed, while the blossoming field of Biotech & Healthcare accounted for over 8% of investment and companies backed. Growth investment into SMEs and fast-growing companies that are the backbone of the region reached €1.23 billion in 2022, making it the largest investment segment.

To read the 2022 Central and Eastern Europe Private Equity Statistics, please click here.

European PE capital peaks in 2021 at €846bn

  • Capital under management doubles since 2012, number of active funds rises by over 40%
  • Capacity for new investments reaches €285bn in Europe

 

Invest Europe, the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors, today published Positioned for the Challenge: Capital Under Management & Dry Powder 2021, the latest research highlighting the scale and growth of the private equity and venture capital (PE/VC) industry in Europe over the past decade, as well as the capital available for new investments.

  • Private equity and venture capital managed a record €846 billion in capital on behalf of investors at the end of 2021, of which €561 billion represented portfolio value at original investment cost. That capital is held by 2,737 firms, managing 7,595 active funds across Europe, a 42% increase on the number of funds from 2012.
  • PE/VC unallocated capital reached €285 billion in 2021, equating to 84% of the total equity invested by the industry between 2019 and 2021. Of that capacity, €181 billion is in the hands of buyout funds, while venture capital has €42 billion available for investment.

The 3rd annual edition of the Capital Under Management & Dry Powder report gives a transparent picture of the size and scope of the private capital industry in Europe, separating managers and funds on the continent from the global picture and the broader alternative assets universe. It shows an industry growing sustainably, with reserves in line with opportunities ahead.

Funds located in the UK & Ireland accounted for 45% of unallocated capital and 53% of portfolio value (at initial investment cost), matching trends seen over the last decade. The data also highlights large industries and well-capitalised funds across the continent, with France and Benelux the second-largest region, holding 28% of all unallocated capital and 24% of portfolio at cost in 2021. Nordic funds were next largest with €55 billion in portfolio at cost and €32 billion in unallocated capital.

Eric de Montgolfier, CEO of Invest Europe, commented:

  • “Data is essential for explaining private capital and its role. However, sometimes that data is lacking, or so broad that it does not reflect the reality on the ground, in Europe. Invest Europe’s Capital Under Management & Dry Powder report delivers a comprehensive and transparent view of our industry, its development over the last decade, and its capacity for new investment.”
  • “As European private equity and venture capital has grown, so unallocated capital has increased steadily and in step with the opportunities. With rising interest rates and looming economic uncertainty, European private capital is well-positioned to invest and guide European companies through a challenging period.”

Invest Europe data tracks PE/VC capital by investor type, showing that pension funds account for 27% of unallocated capital, highlighting private equity’s essential role in funding better retirements for European citizens. Fund of funds and other asset managers represent a further 19% of unallocated capital, followed by other long-term investors including family offices, insurers and sovereign wealth funds. The report also delves deeper into capital by vintage year and compares first-time funds from new managers with successor funds from established firms.

To download a copy of Positioned for the Challenge: Capital Under Management & Dry Powder 2021, please click here.