European Private Equity Fundraising Hits Record In 2019
New data from Pitchbook says that 2019 was a record year for European Private Equity fundraising, with €86.4 billion raised across 89 vehicles. Notably, Pitchbook says that fund counts dropped to the second lowest figure in over a decade and funds in the €1 billion to €5 billion bracket grow by 62.5% year-over-year, indicating LP capital is chasing larger but fewer funds.
"After another year of geopolitical uncertainty, 2019 set a new annual record for European private equity fundraising, graduating the asset class from the fringes of the capital markets and moving it closer to the mainstream," said Dominick Mondesir, EMEA Private Capital Analyst at PitchBook. "As PE firms expand their offering, we are seeing more institutional investors recognize the value of diversified fund strategies. We expect 2020 fundraising to remain strong, with at least three Europe-headquartered firms set to return to market with flagship vehicles."
Dealmaking by European private capital shops remained robust despite the political quagmire of Brexit and the U.K. general election in December, with deal activity coming in at €453.5 billion across 3,867 deals, falling just shy of 2018's record totals for dealmaking (€464.5 billion across 3,995 deals). The €10bn EQT-led carve-out of Nestle Skin Health in the third quarter was the second largest European buyout since the global financial crisis.
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