Private equity fund-raising in Europe last year hit a record €60 billion (US$72.5 billion), more than double 2004’s €27.5 billion (US$33.2 billion), according to preliminary results from the European Private Equity and Venture Capital Association. The EVCA also found that about €45.6 billion (US$55.1 billion) of that total was allocated to buyouts, a 20% increase from the year before. Venture capital fundraising rose 44% in 2005, with the biggest boost coming in early-stage high-tech funding and expansion stage high-tech funding, though VC overall represents a smaller chunk of the total fund-raising.
While buyouts accounted for more than 75% of the total p.e. funds raised, VC ran a distance second, representing 21.2% of the total, down from nearly 32% in 2004. All stages of non-tech companies saw a slight dip in percentage of total funds raised.
Banks and pensions funds are now the largest source of funding – 57.5% of the total funds, compared with 41% in 2004. According to the EVCA, this means those two sources have, on average, tripled their allocation to private equity. Corporate investors likewise tripled their allocation to venture capital.
