Private equity: Record capital levels drive European expansion

Assets under management or advisory in the European private equity and venture capital industry hit a new record high in 2024, with assets under management (AuM) growing seven per cent to 1.25 trillion euros, spread across more than 3,000 private equity and venture capital firms. As reported by Invest Europe in its study Capital Under Management & Dry Powder 2024: Positioned for the Challenge, these figures represent more than ten consecutive years of growth, and the industry’s assets are now 2.6 times greater than in 2015.

The AuM ranking was dominated by buyout funds, which held 507 billion euros. This was the first time this figure exceeded half a trillion euros. It was also the first time that, at 111 billion euros, venture capital funds managed assets worth more than 100 billion euros. 

Dry powder reaches all-time high
Capital available for future investment – known as “dry powder” – increased to a new high of 414 billion euros in 2024. The figure is equivalent to 81 per cent of the 511 billion euros invested over the past four years, indicating that there is a healthy balance between available capital and investment opportunities.

Buyout funds’ dry powder amounted to 278 billion euros, while venture capital fund commitments – the sum fund investors have committed to make available for investments – rose to 59 billion euros. This allocation highlights the continued interest among institutional investors in funds investing in strategically highly relevant areas such as the digital transformation, artificial intelligence, deep tech and defence tech. The figures also demonstrate the alternative asset classes’ capacity to invest, allowing both buyers and sellers to structure the transaction backlog that has built up in the past years. 

The full study is available on Invest Europe’s website at: https://www.investeurope.eu/research/activity-data/capital-under-management-dry-powder/ (members only)