European buyouts

March 2024

The European buyout market possesses characteristics that are unique from the US market, and therefore may present a different set of opportunities to investors. The most prominent difference between the US and European buyout markets is the region’s fragmentation of countries. Having one broad geographical basket that encompasses the numerous countries in Europe may bring potential challenges such as language, cultural, legal, and regulatory differences. However, these differences may also offer opportunities to develop competitive advantages, particularly in deal sourcing and value creation, for managers who are ingrained in the ecosystem and have access to local networks.

In this research note, we focus on the buyout market, as it tends to be the most prominent private equity strategy in Europe. While there are venture capital and growth equity strategies that focus on Europe, they comprise only a small portion of Europe’s private equity market.