PitchBook News - The future of our infrastructure

Digital infrastructure, which encompasses telecommunications, broadband, and data center assets, has also experienced increased fundraising over the past decade and a half. The digitization of the economy, heightened needs around data due to technology such as AI & machine learning, and less polarized political support have all benefited this type of infrastructure.

Many of the economic, political, and societal tailwinds that have supported fundraising in sustainable and digital infrastructure will persist, if not intensify, in the coming years.

Read my new note to learn more about how and why these types of infrastructure will continue to shape the space—and even one another.

Download the free research: Sustainable and Digital Infrastructure in the Private Markets

 

The year was defined by smaller but more numerous deals, with megadeals of over €1B hitting a nine-year low as LBOs became more expensive and sponsors favored smaller bolt-on deals. Bolt-ons represented 67% of all buyouts last year—the highest percentage to date.

PE exits also hit a nine-year low as the IPO market in Europe was completely muted, with only 17 PE-backed public listings in 2022.

GPs took note of the downfall of certain recently listed businesses that saw their value wiped away on the public market, such as Oatly or Cazoo, and refrained from exiting their investments, instead adopting a wait-and-see approach.

European PE fundraising hit its lowest figure since 2006 in terms of fund count, raising only €52.8 billion across 92 funds in 2022, roughly half of last year's figures.

It was a particularly difficult year for first-time funds to raise capital as LPs turn to experienced fund houses in periods of a market downturn. 2022 counted only 14 first-time funds out of the 92.

For more data and analysis, download our free 2022 Annual European PE Breakdown.