The private equity landscape in Europe is undergoing a remarkable transformation, and thought leaders across the industry are taking notice in the run up to SuperReturn Europe. Hear the experts share their perspectives on the resurgence of interest and activity in the European market. Will you be part of Europe's revival?
A ripe opportunity set in Europe
Lee Kruter, Head of Performing Credit, Partner and Executive Committee Member, GoldenTree Asset Management, emphasized the growing appeal of Europe as a destination for private equity investments, particularly in private credit. Over the past six months, the region has presented compelling opportunities in sectors such as travel and consumer markets. What makes Europe stand out, according to Kruter is the relatively lower competition compared to the US market. This dynamic has created a fertile ground for investors to explore untapped potential and drive growth.
- “We’ve been finding a lot of great things to do in Europe, particularly the last six months. Some things on the travel side, some things on the consumer side in Europe, particularly in private credit. And that’s been a really ripe opportunity set as the competition in Europe has been a little bit less so than what’s been in the US.”
Europe’s competitive evolution
Tara Moore, Managing Director, Head of European Originations, Golub Capital, highlighted the resurgence of interest in Europe, noting the region’s evolving competitive advantages. As the European market matures, it is beginning to mirror the structure and dynamics of the US private equity landscape. This natural evolution is positioning Europe as a more attractive and competitive market for global investors.
- “I think Europe is definitely having a resurgence in terms of interest. You’re seeing an overarching improvement in European competitive advantages. I think it’s just a natural evolution that the European market will look and feel more like the US.”
Increased deal-making activity
While private equity activity in the US and Asia has slowed, Europe has seen a notable uptick in deal-making. Rebecca Gibson, Partner, Oakley Capital, pointed out that this increased activity is creating significant opportunities for pan-European funds to capitalize on the region’s momentum.
- “Within Europe, you’ve seen actually an increased activity in terms of deal-making relative to other areas such as the US and Asia, which have slowed down a bit more. That creates opportunities for us as a pan-European fund.”
Meeting the Demand for Europe
Richard Hope, Global Co-Head of Investments and Head of EMEA, Hamilton Lane, underscored the growing demand for European investments and the responsibility of fund managers to deliver strong returns. As investors seek more exposure to Europe, the region’s managers and funds are tasked with identifying high-potential opportunities and generating value for stakeholders.
- “People want more Europe. And so how is Europe going to deliver that in terms of the managers, the investments they make, the funds they manage, and then the returns they can generate for those investors.”
The Untapped Potential of Europe’s Mid-Market
Flor Kassai, Managing Partner, Head of Buyout, Inflexion, provided a compelling comparison between the European and US private equity markets, highlighting the under-penetration of Europe’s mid-market. With 75,000 companies and only 80 funds actively investing, Europe’s mid-market offers a wealth of untapped opportunities. In contrast, the US has 50,000 companies and 190 funds, making the European market 75% less penetrated. This disparity underscores the immense potential for private equity growth in Europe.
- “In Europe, we have around 75,000 companies, and you have approximately 80 funds that are looking to invest in that pool of companies. That same stat in the US is 50,000 companies and 190 funds accessing those companies. So the European mid-market is 75% less penetrated than the US market. But that is what I believe provides a fantastic opportunity for private equity in the mid-market in Europe.”
