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RISING STARS IN PRIVATE EQUITY: EUROPE’S MID-TIER FIRMS
Rising Stars in Private Equity:
How Europe’s Mid-Tier Firms Are Making a Name for Themselves
In the high-stakes world of private equity (PE), attention is often monopolised by titans like EQT, Permira, and CVC Capital Partners. Yet, beneath the radar, a powerful movement is reshaping the European investment landscape. Midmarket private equity firms – typically targeting companies valued between €50 million to €500 million are quietly building reputations for agile deal-making, deep sectoral expertise, and long-term value creation.
This shift is being led by a new generation of PE players who are capitalising on inefficiencies overlooked by mega-funds. Among them are IK Partners, Inflexion Private Equity and Stirling Square Capital Partners to name a few.
The European mid-market offers what many investors crave: fragmented industries ripe for consolidation, strong family-owned businesses seeking succession, and room for operational improvement. Unlike mega-deals that often hinge on financial engineering or aggressive cost-cutting, mid-tier PE thrives on partnership and organic growth.
According to Invest Europe, mid-market PE firms deployed over €40 billion in 2024, marking a 15% increase from the previous year. This uptick signals growing confidence among limited partners (LPs) that mid-sized deals offer resilience and upside, particularly in volatile economic conditions.
IK Partners (formerly IK Investment Partners), headquartered in Luxembourg, is a leading European private equity firm focused on the Nordics, Benelux, and DACH regions. With a strategic emphasis on environmental, social and governance (ESG) principles and operational value creation, IK has become a trusted partner for family-run and entrepreneur-led businesses seeking responsible succession planning and sustainable growth.
The firm specialises in mid-market investments, offering hands-on support to unlock potential in companies across healthcare, industrials, services, and consumer sectors. Its longstanding regional expertise and collaborative approach have made it a preferred investor in Europe’s core economies.
At the helm of IK’s origin story is Björn Savén, a Swedish industrialist and cofounder of the firm – then known
as Industri Kapital alongside Kim Wahl in 1989. A graduate of the Stockholm School of Economics (1972) and Harvard Business School (MBA, 1976), Savén began his career at Gulf Oil and Esselte before turning to private equity.
Serving as CEO from 1989 to 2008, and later as Executive Chairman (2008–2011) and Chairman until 2017, Savén was instrumental in pioneering mid-market buyouts in Northern Europe. Under his leadership, IK expanded its geographic footprint and developed a reputation for long-term value creation in private equity – a legacy that continues to shape the firm’s strategy today.
Founded in 2002, Stirling Square has built a reputation for “buy-and-build” strategies across sectors like industrials, services, and healthcare. With offices in London and Madrid, the firm operates across borders, identifying under-managed businesses and transforming them into industry leaders. Stirling Square Capital Partners has been co-founded by Gregorio Napoleone and Stefano Bonfiglio Gregorio Napoleone, prior to founding Stirling Square worked at Bankers Trust (Milan and New York), Ferrero Group, and DLJ Merchant Banking Partners. Greogrio Napoleone is also
currently Chairman at OHI Group and Isoclima Group. Gregorio Napoleone also sits on the Board of Trustees at New York University and is also a Member of the Dean’s Council at NYU Tisch School of the Arts. Stefano Bonfiglio has earned a BS in International Economics from Georgetown University, an MA in International Studies from University of Pennsylvania and an MBA from Wharton. Under Stefano’s leadership, Stirling Square has executed transformative buyouts across Europe.
Inflexion Private Equity, headquartered in London, has built a strong reputation for helping UK-based mid-sized companies scale internationally – frequently through bolt-on acquisitions, digital transformation, and strategic guidance. With approximately £13 billion in assets under management and nearly 60 active portfolio companies, Inflexion has become one of Europe’s most prominent midmarket investors.
The firm was co-founded in 1999 by Simon Turner and John Hartz, who began with a simple setup – two desks and one computer – and a bold vision: to back ambitious, entrepreneurial businesses with growth potential. Simon Turner, a graduate of Oxford University with a
background at Daiwa Europe’s Private Equity Group, is known not only for his leadership in private equity but also for his philanthropic work and adventurous spirit, having skied to both the North and South Poles. John Hartz, his long-time partner, continues to co-lead the firm and steer its strategic direction.
What distinguishes these firms is not just size, but strategy. Mid-tier funds often maintain tighter deal teams, allowing for faster decisions and deeper operational involvement. Their investment theses are less reliant on leverage and more focused on scaling up organically or through smart acquisitions.
Moreover, amid geopolitical uncertainty and shifting regulatory frameworks in the EU, their regional focus and adaptability give them an edge over global mega-funds that require scale to justify resource allocation.
As Europe continues to face economic headwinds – from inflation to energy transition – the role of mid-market PE is set to grow. With succession issues looming large across Europe's ageing SME base, and innovation thriving in its secondary cities, the opportunity set for firms like Stirling Square and its peers is rich and expanding.
Private equity’s future in Europe may still be shaped by the largest players, but it will be increasingly defined by the nimble, midtier firms turning overlooked businesses into continental champions.
