More than $1tn in market capitalisation has been stripped from European equity markets over the past decade through private equity-led and unlisted company acquisitions, according to a joint report by HSBC Global Research and think tank New Financial.

The report identified over 1,000 European listed companies that were taken private during the period, dwarfing the 130 that chose to relocate listings to the US. The findings suggest that private ownership has emerged as the preferred route for many companies seeking growth, stability, and improved valuation away from the volatility of public markets.

“The inability of public markets to adequately recognise company value at scale is problematic,” said Ian Stuart of HSBC. “There is a clear shift in momentum from public to private capital.”

Major recent examples include Sycamore Partners’ bid for UK pharmacy chain Boots, KKR’s €22bn acquisition of Telecom Italia’s NetCo, and Blackstone and Permira’s $13bn take-private of Adevinta. London has also seen high-profile names such as Morrisons and Worldpay exit the stock exchange in favour of private ownership.

While some policymakers have voiced concerns over the implications for market liquidity and transparency, investors and private equity leaders point to the growing role of private capital in supporting innovation, restructuring, and cross-border growth—especially during periods of macroeconomic uncertainty.

Hamish Mair, Head of Private Equity at Columbia Threadneedle Investments, noted: “If you’ve got a soft equity market and a large amount of unspent private capital, it’s only natural that public-to-private deals will increase.”

Analysts also highlight the appeal of private capital for its ability to deploy at scale, reduce listing burdens, and provide long-term strategic support. Goldman Sachs CEO David Solomon echoed this sentiment earlier this year, stating that companies can increasingly “get capital privately, at scale,” reducing the need to go public.

Despite some concern over market shrinkage and IPO inactivity, private equity continues to play a pivotal role in Europe’s capital markets landscape. With firms refining execution strategies and sitting on vast amounts of dry powder, the public-to-private pipeline shows no signs of slowing.

Source: Financial Times