The Europe 250 Investor Ranking 2024 report, published by gain.pro, offers a comprehensive view of the largest and most active private equity (PE) investors across Europe. With a methodology based on total managed enterprise value (EV) rather than just funds raised, the ranking provides a unique perspective on how major PE firms are shaping the European investment landscape. This post will cover general insights from the report while diving deeper into the Technology, Media & Telecom (TMT) sector, one of the most dynamic areas in private equity investment today.
General Private Equity Trends in Europe
The Most Powerful PE Investors
The top three private equity firms in Europe, ranked by total EV managed, are:
- CVC - €70 billion
- EQT – €61 billion
- KKR – €60 billion
These firms, along with other giants like Blackstone, Cinven, Carlyle, Ardian, and Bain Capital, collectively manage €1.6 trillion across 250 investors.
Geographic Trends: The US and UK Lead the Way el ranking
Despite being a European ranking, American and British investors dominate, managing 49% of the total EV:
- US-based investors control €420 billion (26%) of the total.
- UK-based investors manage €373 billion (23%).
- German investors are underrepresented, managing only €54 billion (3%), despite Germany’s strong economic position in Europe.
London remains the leading private equity hub in Europe, followed by Paris, New York, and Munich.
Investor Concentration: A Market Dominated by Few
The Europe 250 ranking highlights the dominance of top players:
- The top 25 firms control 46% of the total EV.
- The top 50 firms account for 66% of total EV.
- Older firms have a stronger foothold, with investors established before the 1990s managing 75% of the EV.
Investment Activity: More New Investments than Exits
Over the last six years, private equity investors in Europe have been significantly more active in acquisitions than exits:
- 5,405 new investments have been made..
- 2,676 exits have occurred, meaning PE firms are holding onto assets longer.
This highlights a strong expansion strategy, particularly in high-growth sectors such as TMT, Finance, and Industrials.
The Rise of TMT Investments in European Private Equity
Leading PE Investors in the TMT Sector
The TMT sector has become a focal point for private equity, driven by digital transformation, cybersecurity needs, and AI advancements.
The top investor in the TMT sector is Hg, managing a portfolio where 72% of assets are in TMT. Other key investors include CVC, EQT, and KKR, who are also active in digital infrastructure, enterprise software, and media.
Why are PE Firms investing in TMT
Several factors are driving the surge in TMT private equity investments:
- Recurring Revenue Models: Many TMT companies, particularly SaaS firms, generate predictable, high-margin revenue.
- Digital Transformation: The shift towards cloud computing, cybersecurity, and AI continues to fuel investment opportunities.
- M&A Growth in TMT: The TMT sector is highly fragmented, creating opportunities for buy-and-build strategies.
- Resilience to Economic Cycles: Unlike traditional industries, software and telecom infrastructure tend to be more stable in economic downturns.
North American vs. European TMT Investment Trends
- North American PE firms overweight investments in TMT, Financials, and Energy & Materials., Finanzas y Energía & Materiales
- European investors prefer Services, Consumer, and Science & Health.
This means US-based investors are pushing TMT valuations higher, making it more competitive for European funds.
Tech & TMT Investment Hotspots in Europe
The most attractive cities for TMT investment include:
- London - The heart of Europe's fintech and artificial intelligence ecosystem
- Stockholm - Home to major SaaS companies
- Paris and Amsterdam – Growing hubs for deep tech and cybersecurity.
PE Firms With High Buy-and-Build Activity in TMT
Some PE firms actively growing their TMT portfolios via acquisitions and mergers:
- Hg – Especializado en software empresarial de mercado medio.
- CVC & EQT – Invierten fuertemente en infraestructura de telecomunicaciones y computación en la nube.
- Bridgepoint & Partners Group – Inversores líderes en empresas tecnológicas europeas de rápido crecimiento.
What’s Next for PE in TMT?
Looking ahead, we expect three major trends that will shape private equity investment in TMT:
- Greater focus on AI and automation – AI-driven companies will attract more PE funding.
- Expansion of cybersecurity and cloud – As digital threats increase, PE firms will boost investments in cybersecurity solutions and cloud services.
- More cross-border mergers and acquisitions in TMT – An increase in deals between European and North American investors is expected, as U.S. firms continue to expand their influence in Europe.
Conclusion and future prospects
The Europe 250 Investor Ranking 2024 highlights the increasingly relevant role of private capital in European markets, with the TMT sector (Technology, Media, and Telecommunications) as one of the main drivers of growth. The growing investment in software, telecommunications infrastructure, and digital transformation indicates that private equity activity in TMT will continue to expand in the coming years.
For companies looking to capitalize on this growth, establishing strategic alliances with leading private equity investors will be key to driving innovation and staying competitive in an ever-evolving digital environment.
From the Tech M&A area at Baker Tilly, we advise our clients on the buying and selling of tech companies, ensuring compliance with all legal requirements and maximizing the value of each transaction. If you are considering diving into a buying or selling process, don't hesitate to contact our specialists for personalized advice.
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