Blackstone is preparing to deploy as much as $500bn in Europe over the next decade, betting that the region’s valuation gap with the United States and its structural growth needs will continue to offer compelling opportunities.

Speaking at the Largest DACH-focused Private Equity Conference, Jürgen Pinker, Head of European Acquisitions at Blackstone, joined a fireside chat led by Dr Benjamin Leyendecker, Partner at Kirkland & Ellis. He described the outlook for deals as cautiously optimistic, pointing out that although 2024 was tough and early 2025 mixed, macro pressures are beginning to subside and the backdrop is shifting towards a “durable recovery.”

For Blackstone, Europe remains a cornerstone of its global strategy. “We believe in Europe. For us, Europe is the second largest area of investment […]. We think that we can invest by the amount of $500bn over the next decade in Europe, which is obviously significant,” Pinker said.

The firm sees strong momentum in public-to-private transactions, particularly in the UK and continental Europe, where valuations remain attractive relative to the US. The narrowing gap between buyers and sellers has also created conditions for higher quality assets to come to market at reasonable prices. According to Pinker, this phase of the cycle offers rare opportunities: “We actually think this is a great opportunity to buy high-quality businesses and make a small discount from them.”

Blackstone’s sector focus spans digital infrastructure, the energy transition, and defence, alongside opportunities in industrials where it seeks to back market leaders with strong growth potential. Computing power and grid modernisation are seen as critical investment themes as Europe races to keep pace with AI adoption and net-zero commitments.

AI is also central to Blackstone’s operational strategy. The firm established its Data Science Group in 2015 to help portfolio companies prepare for disruption and harness AI for productivity gains. Each investment undergoes a tailored analysis of AI’s potential risks and opportunities, not only in software but across industrials, business services, and consumer-facing sectors.

Capital markets are also reshaping the landscape, with co-investment playing an increasingly important role in Blackstone’s model. Pinker noted that large LPs now expect co-investment rights as standard, providing managers with greater firepower for transformational deals.

Ultimately, Pinker emphasised that value creation remains at the core of Blackstone’s strategy. Rather than riding sector-wide multiples, the firm seeks to reposition businesses for long-term growth, leveraging its platform to generate synergies and operational improvements. “Some confuse market returns with their own returns. But this is not alpha. Very early in due diligence you have to think about how to create value,” he said.

Despite lingering headwinds, Blackstone’s conviction in Europe underscores the region’s role in shaping the next cycle of private equity growth. Alongside players such as Brookfield and Aurelius, Blackstone is a key part of driving value in private equity across market cycles. With governments pushing pro-economy reforms and structural needs in energy, defence, and digital infrastructure, the stage is set for private capital to play a defining role.

by Andreea Melinti

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