Private Equity Trend Report 2025

The study at a glance

DACH weaker than the European average

Another key result was that performance in the German-speaking countries (DACH) in 2024 was below the European average. Transactions fell to 549, a decline of 6% compared to 2023. Deal value did rise, but only slightly – by just 0.2%, to €56.9 billion.

Nevertheless, the German market remains very important for PE investors. A clear majority (58%) of the PE firms surveyed already have investments in Germany, and 98% of these firms want to keep investing in the country over the next five years – even more than in 2023 (91%). And over a third (39%) of firms which intend to remain active in the German market want to increase their investments.

TMT remains top sector

Looking at individual sectors, not much has changed: as in previous years, the Technology, Media and Telecommunications (TMT) sector was by far the most important target sector for private equity in 2024, both in terms of number of transactions and their value. 2,229 deals were made, which was only slightly more than in 2023, but their total value almost doubled from €86.7 billion in 2023 to €153.7 billion in 2024. TMT was thus responsible for around one in every three transactions (34%) and roughly a third (34%) of the total value of all transactions.

The Industrial and Chemical sector was the second largest sector by number of transactions and the third largest by value. Like in 2023, the sector was responsible for 15% of all transactions, accounting for 20% of total value.

The Business Services sector came in third place in terms of number of deals (901 deals, 14%) and second place in terms of deal value (€58.8 billion, 13%).

Germany in second place by deal value

The German market played host to 11% of all European private equity transactions in 2024, putting the country in fourth place by number of deals – behind the Scandinavian countries, as in 2023. However, the 711 transactions on the German market were worth €65.3 billion, the second-highest value of any country in Europe and 15% of total deal value across the continent.

Discussions about relaxing Germany’s strict rules on government borrowing, growing competition from cheaper Chinese manufacturers and the move away from Russian gas supplies are forcing Germany’s industrial base to modernise. This is particularly necessary in Germany because the country’s traditionally strong SMEs have invested less in recent years than in the past, owing to high costs.

The result of this is that PE firms which already have investments in Germany (58% of the survey respondents) almost invariably want to keep them for the next five years (98%). However, only 55% of the survey respondents said that Germany is likely to become a more attractive destination for investment over the next five years – down from 65% in 2023.

The top three buyouts of 2024

The largest PE buyout in 2024 was the acquisition of British-based private school operator Nord Anglia Education Ltd. by NB Private Equity Partners Ltd., the Canada Pension Plan Investment Board und EQT Partners Hong Kong Ltd.; the deal had a value of €13.3 billion. In second place came the joint venture between Fab 34, Intel’s Irish-based production facility for Intel 4 Series processors, and Apollo Global Management, Inc. (deal value: €10.1 billion), and the third-largest transaction was the €8.3‑billion takeover of 50% of the French Opella Healthcare Group by Clayton, Dubilier & Rice, LLC and Bpifrance SA.

Investors are optimistic – particularly about their own industry

On the whole, the European private equity industry is positive about the future: 46% of respondents want to invest more than in the previous year, 44% want to invest about the same amount and only 10% are planning to reduce their investment activity.

Economic scepticism

A total of 56% of respondents expect some improvement (47%) or significant improvement (9%) in the market environment for PE firms in 2025. However, there is less optimism about the economy as a whole: a slim majority of respondents (51%) expect slight growth, while just over a quarter (27%) expect zero growth. Just over one in every ten respondents (11%) expects a recession – and another 11% expect significant growth.

Digital tech is driving value creation

Digital tech has gained a very prominent role for PE firms in value creation: a total of 83% of respondents said that digital transformation is important (66%) or very important (17%) for future profitability. Unsurprisingly, almost three quarters of respondents (71%) therefore invested in digital transformation in 2024, either for themselves or in their portfolio companies, and 72% want to do so in 2025.