European private equity deals surge by 78% amid economic challenges

Private equity firms have driven buyout activity to $133bn in 2024, a 78% increase compared to the previous year.

This growth outpaced the global rate of 29%, highlighting Europe’s appeal for opportunistic investments.

Key deals during the year included a $6.9bn investment in Hargreaves Lansdown and a $5.5bn acquisition of cybersecurity firm Darktrace by Thoma Bravo. The UK, Nordics, and Germany emerged as prime targets due to their relative stability and attractive valuations. “These regions have become focal points for private capital providers,” said Neil Barlow, a partner at Clifford Chance.

US-based PE firms have been particularly active, leveraging the strong dollar to acquire undervalued assets. However, challenging market conditions have made exits and listings difficult. Arnaud Blanchard, Morgan Stanley’s co-head of equity capital markets, noted that many portfolio companies are preparing early for eventual IPOs, including Klarna and AI cloud provider CoreWeave.

This surge in European activity demonstrates the resilience of private equity to adapt and thrive, even during periods of economic uncertainty.

Source: Pymnts

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