A recent study by PitchBook reveals that private equity deals in Europe, led by non-European investors, are showing signs of recovery after a decline due to the pandemic. Technology deals are leading the way, marking a turning point for the sector.
According to PitchBook data, as of August 20, 2024, foreign investors have injected $154.6 billion into 860 transactions this year, a figure that approaches 2023’s $165.2 billion, with one more quarter to go. This year, 47% of capital invested in Europe comes from non-European investors, compared with 36% in 2023, illustrating a rise in foreign investment.
However, despite this increase in amounts invested, the total number of transactions was slightly down on the previous year, due to the larger size of the operations.
The second quarter of 2024 stands out as the strongest in two years, with $89.1 billion invested in 328 transactions in Europe. Among these transactions, the acquisition of Italian operator Netco by a KKR-led group for $23.7 billion in June became the second-largest private equity investment in Europe involving a foreign investor.
The information technology (IT) sector attracts the largest share of non-European capital, accounting for 36% of transaction value this year, rising to $45.4 billion by 2022. By 2024, this figure has already reached $55.9 billion. By contrast, the B2B products and services sector is experiencing a marked decline, with investment dropping to $25 billion from $120 billion in 2022.
This PitchBook study confirms a rebound in investment in Europe, particularly in the technology sector, where international players are increasingly present.
