PitchBook: Only 8 first-time private equity funds in Europe closed in 2023

In 2023, the European private equity landscape witnessed the closure of only eight first-time funds, marking a challenging period for newer managers in the industry, according to data from PitchBook. This contrasts with the situation in 2021 when 46 funds successfully raised a total of €8 billion. Subsequently, fundraising for first-time funds dwindled to just 21 funds securing €2.5 billion in 2022 and, as of now, only eight funds have raised €1.2 billion this year.

However, amidst these fundraising difficulties, established and larger private equity firms have continued to attract capital. PitchBook analysts anticipate that fundraising levels in Europe for 2023 will surpass those of 2022.

During the first half of 2023, a total of €49 billion was raised across 51 private equity vehicles. Notably, the first-time funds that managed to close had specific investment focuses, with four of them adopting country-specific strategies. This approach has enabled them to appeal to investors with specialized mandates who are less inclined to invest in larger, more generalist funds, as per PitchBook's assessment.

Among the funds that successfully closed during this period were the Banijay UK Growth Fund, concentrating on media production assets; the Zintinus Fund I, specializing in food-tech; and the Sycamore Buyout Fund I in Hungary, with a focus on life sciences.