Private equity fundraising has changed significantly over the past decade. Fundraising refers to the process through which private equity funds, also known as General Partners, raise capital from investors, also known as Limited Partners. Historically, fundraising grew strongly until the 2008 financial crisis caused a sharp decline, followed by a recovery beginning in 2010.

A low-interest-rate environment, together with the transformation of firms such as KKR and Blackstone into major private markets players, supported strong historical fundraising growth and boosted activity in Europe until the early 2020s. European private equity fundraising averaged around €50 billion, with buyout funds accounting for more than 80% of allocated assets.

After reaching €112 billion in 2006, European fundraising fell to €16 billion in 2009 as a result of the global financial crisis. It then recovered steadily, reaching over €134.1 billion in 2021. Since early 2022, however, the fundraising environment has become more difficult due to inflation, higher operating costs, weaker returns, and declining investor confidence.

Private equity funds now face higher costs of debt, the denominator effect, and a more selective investor base. Although European fundraising grew in 2023, this increase was concentrated among large, established managers, while small and mid-sized funds faced greater pressure. As a result, fund managers must adapt their fundraising strategies to secure long-term success.