European private equity firms raised €117.8 billion in 2023, driven by seasoned investors capitalizing on market dislocations and rising interest in corporate carve-outs.

Target Information

The recent fundraising activities by European private equity firms saw a remarkable total of €117.8 billion in 2023. This amount is notably close to the previous record of €118.4 billion reached in 2021. The growth in fundraising can be attributed to a concentrated effort from a handful of high-profile managers. Notably, the top five funds accounted for more than half of the total capital raised, indicating a trend towards successful mega-funds amidst economic uncertainty.

Despite rising interest rates and high inflation impacting the broader economic landscape, the appetite for private equity remains robust. Limited partners responded to the volatility by favoring established mega-funds from well-regarded firms like CVC, Permira, and KKR, which successfully mobilized commitments from their networks in anticipation of market dislocations and potential returns.

Industry Overview in Europe

The European private equity landscape has shown surprising resilience, even as private equity deal value contracted by 26.5% compared to 2022. Interestingly, the number of transactions increased by 4.4%. T