The global private equity market saw a sharp rebound in 2024, with the total number of deals increasing 12% year-on-year, data firm Pitchbook said in its 2024 Annual Global Private Equity First Look. on January 2, 2024. European private equity has also seen significant expansion, with a sharp increase in transaction values. Pitchbook notes that this recovery signals a return to positive momentum in the sector after a period of uncertainty.
In Europe, private equity has seen the value and number of transactions increase significantly. The region recorded a 33.6% increase in transaction value and an 18.2% increase in the number of transactions compared to the previous year. This resurgence is largely due to a change in monetary policy by central banks, which helped boost buyback operations, explained Nicolas Moura, PE analyst at Pitchbook, in a press release published on Monday, January 6 2025.
Mr Moura highlighted that the increased availability of capital and a more favorable economic environment have played a key role in the robust growth of the European private equity market. He also noted that the number of operations estimated for 2024 marks a record year for the region.
Sorties
While outflows have shown some signs of recovery in 2024, the market has remained relatively quiet compared to previous periods. The total value of exits increased by 4.7% year-on-year and the number of exits increased by 18.2%. However, despite these gains, the exit environment has been less dynamic, with fewer than 30 private equity-backed IPOs during the year.
Notable exits in the fourth quarter 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 highlight continued activity in the exit space, although the overall IPO market remains subdued.
Fundraising
In 2024, European private equity fundraising was almost as strong as the record years 2021 and 2023, although it failed to set a new benchmark. 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 has reached a ten-year low, a trend that suggests the dominance of “megafunds” in the region’s fundraising landscape. The move toward megafunds has been a recurring theme in recent years, as larger pools of capital attract more attention from institutional investors.
Fundraising activity varied across Europe, with the Nordic region standing out for its particularly strong performance in 2024. The region outperformed its European counterparts, continuing a robust capital raising trend. Several significant funds closed during the second half of the year, including Nordic Capital Evolution II, BlackFin Financial Services Fund IV and Forbion Growth Opportunities Fund III.
This article was originally written in English and translated and edited in French.
