Private Equity in Europe: Growth,
Powerhouses, and Emerging Mid-Tier Leaders
Private equity (PE) in Europe has grown from a niche investment class into a dominant force shaping the continent’s corporate landscape. With over €1.7 trillion in enterprise value under management across the top 250 firms, Europe's private equity sector is not only maturing, it is thriving.
From global giants managing multi-billioneuro funds to agile mid-market specialists carving out sectoral niches, the private equity ecosystem in Europe is becoming increasingly diverse, innovative, and resilient.
A Maturing Market in a Shifting World
The past decade has seen European PE firms take on a more prominent global role. European buyouts now account for a
sizeable share of global deal volume, with regional players challenging long-standing US dominance.
Even amid inflationary pressure, a sluggish IPO market, and geopolitical uncertainty, European private equity has proven agile, adapting investment strategies, sharpening ESG credentials, and expanding geographically into Central & Eastern Europe and Southern Europe.
Titans of the Industry
Europe’s PE elite are scaling rapidly, raising larger funds and attracting global capital:
CVC Capital Partners (Luxembourg/Jersey) remains Europe’s most powerful player, with over €186 billion in assets under management and a €70 billion European portfolio. CVC’s recent flagship fundraises of €26 billion reaffirms its global appeal.
EQT (Sweden) has emerged as a leading force in digital and sustainability-led investing. With over €210 billion AUM and
a deep bench of tech-savvy partners, EQT combines Northern European pragmatism with global scale.
Ardian (France) has cemented itself as a dominant mid-to-large-cap investor with a multi-asset platform spanning private equity, infrastructure, private debt, and fund-of-funds strategies.
Partners Group (Switzerland) operates with a strong thematic investment strategy, targeting long-term megatrends and sustainable growth across Europe and beyond.
KKR and Blackstone, though US-based, continue to play a major role in European buyouts, with sizeable London and continental offices focused on both largescale and strategic growth investments.
The Rise of Mid-Tier Specialists
Beneath the giants, Europe’s private equity landscape is increasingly defined by a new class of focused, high-performance midmarket firms. These players are vital to Europe's PE health, targeting founder-led businesses, industrial carve-outs, and under-the-radar opportunities often overlooked by mega funds.
Inflexion (UK): A UK-based firm with strong sector expertise in healthcare, technology, and business services. Inflexion, cofounded by John Hartz and Simon Turner is particularly active in growth capital and buy-and-build strategies.
Stirling
Square Capital Partners (UK): With a focus on pan-European mid-market companies, Stirling Square, co-founded by Stefano Bonfiglio and Gregorio Napoleone, is known for operationally intensive investments. Stefano Bonfiglio and Gregorio Napoleone at Stirling Square Capital Partners target Napoleone target companies with enterprise values between €100 million and €500 million across industrials, services, and niche manufacturing.
Capvis (Switzerland): A leading investor in the DACH region, Capvis, managed by Daniel Flaig specialises in complex carveouts and succession deals. It often partners closely with management teams to accelerate operational transformation.
IK Partners (UK/Nordics): Operating across Western Europe, IK targets mid-sized businesses in healthcare, industrials, and consumer sectors. It has a strong presence in the Nordic region.
Notable Mid-Tier Firms Include:
Equistone Partners
Europe (Germany/UK/France): Equistone Partners Group, a spin-out of Barclays Private Equity is known for its consistent strategy of investing in lower mid-market companies with enterprise values of €50 million to €500 million, often via secondary buyouts.
These firms often have deeper regional insight, nimbler teams, and a more handson approach qualities that are increasingly valued in uncertain economic times.
Key Drivers of Growth
1. Strategic Diversification
Firms are expanding beyond traditional buyouts into growth equity, infrastructure, and even impact investing allowing them to align with public priorities like green transition and digital transformation.
2. ESG Integration
European private equity leads globally in environmental, social, and governance (ESG) metrics. Firms are embedding ESG into portfolio oversight and reporting, driven by both regulation (e.g. SFDR) and investor pressure.
3. Cross-Border Expertise
Pan-European platforms are increasingly important. Firms that can execute crossborder deals, manage regulatory differences, and build international growth stories are in high demand.
4. Operational Value Creation
There is a clear shift from financial engineering to operational transformation. Many mid-tier firms now boast in-house teams dedicated to improving supply chains, digitisation, and talent retention in portfolio companies.
Outlook: The Next Decade of European PE
Looking ahead, the European PE industry will likely become more fragmented but also more specialised. As deal competition intensifies and multiples compress, success will favour those who can innovate, operate, and adapt quickly.
We expect:
• A continued rise of mid-market and thematic funds
• Growing influence of Southern and Eastern European firms
• Increased capital flow from Middle Eastern and Asian LPs into European funds
• A push toward exit readiness as IPO windows reopen
Conclusion
Private equity in Europe is undergoing a generational shift – from a maturing industry led by global giants to a dynamic and competitive field filled with highly specialised, agile firms. As regulation tightens and market conditions fluctuate, the firms that thrive will be those who can marry deep sector expertise with operational excellence and responsible stewardship.
Whether it’s a €5 billion carve-out or a €150 million founder-led succession, private equity is increasingly at the heart of Europe’s economic engine.
