Consolidation in Europe's Private Equity Market: Experienced Managers Take Center Stage

The European private equity market is witnessing a consolidation trend, with experienced managers taking center stage. According to PitchBook data, only 16 new private equity funds were established in Europe in the first half of this year, less than a third of all private equity fund closures and the lowest share in a decade. Experienced managers raised over €34.1 billion across 35 funds, while new entrants managed to raise only €3.4 billion. This trend is more pronounced in larger markets such as France and the UK. In France, experienced managers accounted for 73% of all fund closures since 2021, followed by 64% in the UK. However, in Germany, new entrants are still outpacing their established rivals in terms of fund count. For instance, Inseta's entrepreneurship through acquisition fund reached its €60 million hard cap in April after just three months in the market. The fund is led by four veteran partners. Munich-based Greenpeak Partners also reached the €300 million final close of its third fund, lifting the firm's assets under management above €1 billion. This consolidation trend in Europe's private equity market indicates a preference for experienced managers. This, in turn, is making it more challenging for new entrants to gain a foothold in the market. However, in some markets such as Germany, new entrants are still achieving success.