Private equity firms are beginning to scale back their presence in Paris, redirecting capital and talent to alternative financial centres such as Milan, Geneva, and Dubai. 

This comes after years of momentum that saw the French capital rise as a private equity and investment hub, particularly in the wake of Brexit.

According to senior bankers, including executives at JPMorgan, UBS, Citigroup, and Barclays, the current shift is being driven by investor concerns over political instability and the broader market environment in France. Some firms are pausing activity, while others are relocating teams to more stable jurisdictions.

JPMorgan’s Senior Country Officer for France, Kyril Courboin, acknowledged the challenges but emphasised recent progress. Private equity firms, along with investors in real estate, have been among the most responsive to these changes. One managing director at a U.S. investment bank noted that Paris had become a growing centre for private equity, but now many are rethinking their strategies in light of current conditions.

The retreat marks a pause in the momentum generated during Emmanuel Macron’s presidency, during which France positioned itself as a pro-business destination. Despite this, recent political uncertainty has created hesitation among global investors, prompting them to look for more predictable environments.

While some capital is leaving, Paris continues to benefit from its talent base and infrastructure. The reallocation reflects private equity’s ability to adapt to shifting market conditions while remaining focused on long-term value and opportunity.