Invest Europe today published Positioned for the Challenge: Capital Under Management & Dry Powder 2024, the most comprehensive analysis of the European private equity industry’s growth in assets over the past decade, as well as available capital for future investment.
The report highlights the growing role of private equity and venture capital in Europe’s economy and society, showcasing their ability to support future-focused businesses and industries driving growth, innovation, and economic sovereignty.
According to the report, in 2024, European private equity and venture capital assets under management grew 7 per cent to €1.25 trillion, distributed across 3,095 active firms. This marks over a decade of continuous growth, with industry’s assets 2.6 times higher than a decade ago in 2015. The total includes €834 billion in portfolio assets at cost (PAC), with buyout funds accounting for €507 billion, surpassing the €500 billion mark for the first time. At €111 billion, VC funds held portfolio assets worth more €100 billion for the first time.
Private equity and venture capital dry powder reached a record €414 billion in 2024, equivalent to 81 per cent of the €511 billion invested over the previous four years. This reflects a strong alignment between available capital and ongoing investment opportunities across Europe.
While dry powder held by buyout firms declined slightly to €278 billion, uncalled commitments to venture capital rose to €59 billion, underscoring sustained investor interest in backing start-ups driving European innovation and competitiveness. This includes growing momentum in strategic sectors such as AI, deep tech, and defence technology.
The report also highlights the deployment trends of funds, showing the stability and consistency of the industry over long periods of time, as well as through recent market disruption. Time taken for closed funds to see dry powder fall below 30 per cent of capital raised is 5-6 years, a figure that is roughly consistent across all vintages in the study back to 2015. At the same time, funds routinely take 6-7 years to reach their maximum PAC as a percentage of capital raised.
Eric de Montgolfier, CEO of Invest Europe, commented:
European private equity and venture capital goes from strength to strength, yet always in the context of consistent and sustainable growth. Record capital under management also means more managers than ever invested in European companies, bringing their investment and expertise to build better businesses that support Europe’s economy and society, while also giving long-term investors access to some of the most exciting and innovative companies on the continent.
The rising level of European private equity and venture capital dry powder is in sync with historical investment trends, but just as importantly is fully aligned with the continent’s future aspirations. Europe needs billions of euros of investment in its green and digital transitions, to build out critical infrastructure, and to develop its security and sovereignty. These are fields that the industry is already supporting and is well-positioned to continue to develop further.
Invest Europe’s Capital Under Management & Dry Powder report provides a detailed breakdown of assets managed by first-time funds and follow-on funds from established managers. It includes data segmented by fund size, vintage year, final closings, and geographic region.
The report also highlights the role of long-term investors in European funds, covering both capital under management and uncalled commitments. Pension funds represent the largest share of total dry powder at 26 per cent, followed by funds of funds and other asset managers at 19 per cent, and family offices and private individuals at 13 per cent.
The report Positioned for the Challenge: Capital Under Management & Dry Powder 2024 can be downloaded here.
Lead image: Invest Europe
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