Invest Europe, the association representing Europe’s private equity, venture capital and infrastructure sectors, has released Investing in Europe: Private Equity Activity 2025, its annual report examining performance across the region.
The report provides a comprehensive breakdown of activity across segments, stages, sectors and geographies. It also introduces new data on continuation funds and investment in strategic areas such as defence and deep tech, supported by strong momentum in biotech and life sciences.
According to the report, fundraising remained concentrated among fewer, larger funds, with pension funds and international investors playing an increasingly prominent role. Buyouts continued to drive activity, while venture investment showed signs of recovery, exceeding its longer-term average. Across segments, ICT remained the leading sector, alongside continued momentum in biotech and life sciences.
The report’s findings highlight a resilient private capital market, with both fundraising and investment reaching their second-highest levels on record. Private equity and venture capital firms raised €147 billion in 2025, a 16 per cent increase on 2024 levels and second only to 2022’s record. Buyout funds were the primary driver, accounting for €103 billion, a 33 per cent increase, reflecting renewed demand from global investors despite ongoing geopolitical and economic uncertainty.
Total investment rose 3 per cent to €135 billion, marking the second-strongest year after 2021. Buyout investment reached €90 billion, broadly in line with 2024 and 16 per cent above the five-year average. The mid-market segment accounted for 34 per cent of total buyout value, reflecting continued capital allocation to SMEs and scaling businesses. Venture capital investment increased to €20 billion, 20 per cent above the five-year average.
The report also finds that activity accelerated in the second half of the year as markets stabilised following earlier uncertainty, with investors refocusing on long-term fundamentals. Exit value remained solid at €45 billion in 2025, supporting distributions to limited partners.
Commenting on the findings, Eric de Montgolfier, CEO of Invest Europe, said:
Private equity and venture capital activity showed great strength in 2025 against a backdrop of geopolitical and macro uncertainty. Europe provides a predictable and stable environment for global LPs to deploy their money, as well as being full of dynamic and high-potential businesses for skilled managers to back and grow.
Overall, the report provides a detailed breakdown of activity across sectors, stages and geographies, and for the first time includes data on continuation funds and strategic investment areas such as defence and deep tech.
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