Investing in Europe: Private Equity activity 2022

We are introducing you the most comprehensive and authoritative source of fundraising, investment, & divestment data, covering over 1,750 firms and 94% of the €846bn in capital under management in Europe (as of end-2021) provided by Invest Europe

FUNDRAISING

Total fundraising in Europe reached a new high in 2022, with €170bn raised by 801 funds, a 30% increase from 2021. Pension funds were the biggest source of funds, accounting for 27% of the total raised, followed by Fund of funds and other asset managers. North America was the largest source of capital, contributing 24% of the total, followed by Asia and Australia at 22%. The venture fundraising sector had a record year, with €23bn raised, while buyout fundraising reached €111bn, 51% above the average for the past five years. The growth fundraising sector also had a strong year, raising €21bn, the second-highest level ever recorded.

INVESTMENTS

In 2022, the total equity amount invested in European companies reached €130bn, the second-highest level ever recorded, with 9,033 companies receiving investments, 87% of which were SMEs. ICT received over €43bn of investments, and combined with consumer goods & services, accounted for more than 50% of investments by amount. Venture capital investment reached €18bn, almost 50% more than the average for the past five years, with 5,435 SMEs receiving a venture investment, representing around 60% of the total number of companies backed during the year. Buyout investments reached €81bn, 23% above the average for the past five years, while growth investments saw their second-highest levels ever recorded, reaching €29bn for the year, 50% above the average for the previous five years. Investments by European Private Equity & Venture capital funds reached 0.62% of European GDP in 2022, the second-highest level on record.

DIVESTMENTS

In 2022, divestments at cost in European companies reached €33bn, down by 27% from the year before, with the main exit route being a sale to another private equity firm. Venture divestments decreased by 11% to €2.7bn, while buyout divestments saw a 31% year-on-year decrease, reaching €22.5bn. Growth divestments amounted to €7.2bn in 2022, a 13% decrease from 2021. In terms of sectors, ICT and business products and services were most commonly divested. Overall, divestment activity in 2022 was affected by difficult macro-economic conditions during the year.