European PE is on a roll both in fundraising and exits, according to the latest EVCA data to end of 2014. Institutional investors outside Europe contributed 40% and North American institutional investors contributed almost 30 %, of the total capital targeting European businesses. In a research note EVCA said its data is quite comprehensive covering 91% of the EUR 548bn in capital under management in Europe.
- PE investment increased by 14% to EUR 41.5 billion in 2014
- Pension funds provided more than one third to the capital raised. Fund of funds contributed 12%, followed by government agencies (11%) and insurance companies (10%).
- More than 5,500 companies across Europe benefited from private equity and venture capital investment in 2014, an 8% increase on the previous year. The vast majority were small and medium-sized enterprises (SMEs)
- Private equity divestments reached a record EUR 37.8 billion in 2014, as firms exited more than 2,400 companies. The figure divested at cost is the highest level to date for the private equity industry in Europe and represents a 10% increase on 2013.
- Initial Public Offerings (IPOs) played an increasingly important role in divestment activity.
- Fundraising reached USD 44.6 billion, the second highest level in the past five years. The number of new funds raised is the highest since 2011 at 298