Investment by private equity firms across Europe rose in 2015 as buyouts climb
Private equity investment across Europe grew by 14 per cent last year as investors pumped more cash into startups and high-growth firms across the continent.
A total of €47.4bn was invested into companies by private equity firms in 2015, according to industry association, Invest Europe, up by one-seventh on last year.
"Despite volatile financial markets and macroeconomic challenges, private equity and venture capital continue to be a solid source of investment capital for growing European companies," said chief executive of Invest Europe, Dorte Hoppner.
Read more: UK leads the charge on buy-and-build private equity investment
The number of companies winning investment dropped by eleven per cent to 4,971 last year, indicating that private equity firms were taking part in larger funding rounds.
Buyouts remained the most popular form of investment for private equity houses, accounting for €36.3bn – or 77 per cent of all money invested. Money ploughed into growth firms jumped by more than 12 per cent to €6.5bn in 2015, while startups scooped €2bn – up from €1.9bn last year.
While the value of investments climbed last year, the actual appetite for private equity as a form of investing dipped. Funds managed to raise €47.6bn in cash from investors last year – down by one per cent on 2014, and off the high of €54.4bn raised during 2013.
The UK and Ireland maintained its position as one of the leading places for alternative finance in Europe. The two countries accounted for 27 per cent of the market in 2015, behind only France and the Benelux countries as a region.
