EUROPEAN PE MARKET – 2024 RETROSPECTIVE: A YEAR OF CONSOLIDATION

After almost 2 struggling years, the PE activity has been taking up since Q2 2024. This growth is driven by an increasing average amount, while the deal count is flat:

Source: Pitchbook, 2024 Annual European PE breakdown

GPs are also progressively reallocating their dry powder toward primo-investments, namely through LBO deals[1].

The recovery is clear on cleantech PE investments, while the VC environment seems to be coming back to pre-covid levels:

At global level, climate VC investments have been taking up since Q2 2024, driven by the energy sector[2].

LPs are also generally optimistic, since European PE funds raised €122.3Bn in 2024, the 2^nd most important amount in 10 years, right after 2023 at €123.6Bn. However, they are more selective, with the number of new vehicles down by almost 30% year-on-year[3].

Moreover, climate tech funds’ net AUM raised by 20% in 2024, namely in Europe. The two most dynamic sub-categories are growth and infrastructure funds[4]. Investors are flying toward qualitative extra-financial reporting and fleeing from the term “ESG”[5].

[1] Sources: Pitchbook, 2024 Annual European PE breakdown; Gain.pro, The State of European Private Equity H1 2025

[2] Source: CTVC, 2024 Climate Tech Investment Trendsv

[3] Source: Pitchbook, 2024 Annual European PE breakdown

[4] Source: HSBC and Sightline Climate, The Climate Capital Stack and New Funds, December 2024

[5] Source: The Financial Times