TLDR:
- Private equity and venture capital invested €130bn in 2022, the second-highest year for investment.
- Over 9000 companies were backed, driving innovation, job creation, and growth.
A report by Invest Europe highlights the significant investment of €130bn by private equity and venture capital in 2022, marking the industry’s resilience and contributions to building European resilience. More than 9000 companies were backed, supporting innovation, job creation, and growth, amid challenging macro-economic forces. Despite the uncertainties caused by the pandemic and geopolitical events like Russia’s invasion of Ukraine, private equity has shown its ability to support companies through volatile conditions.
The industry has adapted by setting up ‘War Rooms’ to navigate disruptions caused by the pandemic, emphasizing collaboration, innovation, and timely decision-making. As the industry looks to the future, critical sectors like defence, infrastructure, energy, healthcare, and digital will require resilient private equity and venture capital investments. The retailization of private markets is also enabling retail investors to participate in alternative investment opportunities, further driving growth in the sector.
European private equity fundraising showed remarkable resilience in 2023, despite rising rates, significant inflation, and economic unpredictability. The industry continues to scale new heights, generating value, superior returns, and contributing to Europe’s economy and society. The long-term success of private equity and venture capital investments will rely on their ability to adapt, innovate, and drive growth in key sectors, shaping Europe’s future.
