A report of Invest Europe, the fka EVCA association of private capital firms, said that buyout deals are leading the market with raised resources worth 103 billion and investments of 90 billion. The continuation funds fetched 19.8 billion
European private equity closed 2025 with near-record figures and despite geopolitical volatility, trade tensions and an economic slowdown, the old Continent remains an attractive destination, said a report of Invest Europe. The item pointed out that European private equity firms and venture capital raised fund for147 billion euros (+16% yoy), which is the the second-best result ever after the 2022 peak, while investments are worth 135 billion (+3% rispetto al 2024 second-best result ever after the 2021) (press release and the full report). Invest Europe (fka EVCA) represents the private equity community across Europe.
Fundraising and Investments
Buyout funds, the leading market drivers, raised 103 billion (+33% yoy) and 8% above the five-year average. The resources of North American investors account for 30% of the money that European buyout vehicles fetched, which is a a sharp increase from 23.6% in 2024. Overall, 34% of European fundraising came from overseas investors. The main source of capital remains France and the Benelux region (31% of the total), then North America with 22% and the UK and Ireland with 13%. Geographically, managers in France and the Benelux region remain the leaders in fundraising with 69 billion, ahead of the UK and Ireland (50.4 billion), DACH (11.7 billion), the Nordics (8.5 billion) and Southern Europe (Italy, Spain, Portugal and Greece) which raised 17.7 billion in 2025 (16.1 billion in 2024). However, Venture capital fundraising was weaker as firms raised 17 billion (-29% yoy and 16% below the average of the previous five years). On the other hand, venture capital investment remained strong at nearly 20 billion, 20% above the five-year average. The public sector continues to play a significant role in venture capital: government agencies account for 39% of European VC funding, a share that grew further from previous years.
Buyout led the way also for 2025 investments which amount to 90 billion (67% of the total in Europe). The mid-market segment makes 34% of the volumes with the lower mid-market (equity tickets of 15 – 50 million) investments worth 12.5 billion euros for 419 deals, core mid-market (50-100 million) accounted for 10.9 billion euros and the upper mid-market (100-150 million) for 6.9 billion euros.
Technology and services companies attracted over 45 billion in investment in 2025 and, together with the business products and services sector, accounted for over half of total investment in Europe.
Focus Continuation Funds And Disposals
Continuation funds make one of the most dynamic segments of the European private equity market and, for the first time, Invest Europe devoted a specific focus to them. In terms of fundraising, these vehicles attracted a total of 19.8 billion in 2025, more than double the 9.3 billion raised in 2024 (+113%). The buyout segment clearly dominates the market with 15.8 billion raised, whilst growth continuation funds stood at 3.4 billion. Geographically, France & Benelux lead the market with 8.6 billion in fundraising, ahead of the UK & Ireland with 6.5 billion.
Continuation vehicles are showing strong growth also on the investment front. In 2025, investments attributable to continuation funds reached around 15 billion, compared with 9.3 billion in 2024, with buyouts accounting for 9.9 billion and growth investments for 4.7 billion. The transactions involved a total of 69 companies, of which 36 were buyout-backed, 21 were growth-backed and 12 were venture-backed. France & Benelux also remained the leading market for investments via continuation funds with 4.2 billion, ahead of the UK & Ireland and the Nordics, both at 2.6 billion.
On the divestment front, continuation funds are playing an increasingly significant role in secondary buyout transactions. In 2025, the total value of exits via sale to another private equity fund stood at 19.7 billion, involving 504 companies. Within this market, sales to continuation funds now account for 18% of the total value of sale-to-PE transactions, up from 12% in 2024, whilst in terms of the number of transactions, the share rose to 17% from 16% the previous year. This figure confirms that these vehicles are becoming a structural component of the European secondary market and no longer merely a tactical tool for postponing exits.
In 2025, the total value of divestments, across all types of funds, stood at 45 billion at historical cost, a slight decrease from the 47 billion recorded in 2024 but still close to all-time highs. The primary exit route remains the sale to another private equity fund, accounting for 44% of the total value of European exits.
