Private Markets Eclipse Public Listings | PitchBook EMEA Private Capital Outlook
- Editor
- Dec 31, 2025
- 2 min read
What's New
PitchBook's 2026 EMEA Private Capital Outlook projects the ratio of PE-backed companies to public companies in Europe will hit a record 2.3x, up from 2.1x at end of 2025. Since 2014, PE-backed companies have doubled to roughly 13,800, while publicly listed firms have stagnated between 5,700 and 7,000 for two decades.
Why It Matters
Europe is becoming a structurally private-market-dominated economy. PE-backed companies first outnumbered listed firms in 2011; now the private cohort is twice the size of the public universe. This shift is accelerating as take-private activity surges and European companies show persistent preference for US listings due to deeper liquidity and higher valuations.
Big Picture Drivers
US capital influx: US investor participation in European PE deals has risen to 19.5% YTD (from 18.2% at end-2024)—one in five deals now includes US participation; KKR deployed a record $20 billion in Europe during 2025
Megadeal dominance: Seven of Europe's 10 largest H2 2025 deals featured at least one US investor; Blackstone has pledged £100 billion over the next decade, CD&R £2 billion within five years
AI valuation gap: Median AI deal size in Europe sits at €2.6M versus €5.9M in the US; median pre-money valuation gap is even wider at €8.8M versus €44.4M
Take-private momentum: The post-2021 market correction created opportunities to acquire listed assets at discounts, particularly "boomerang stocks" that went public during the prior bull market
IPO quality control: Profitable companies now comprise nearly 90% of listings versus 66.4% ten-year average for VC-backed IPOs
By The Numbers
2.3x: Projected ratio of PE-backed companies to public companies by end of 2026
€9.7B vs €111.7B: Total value of top 10 AI deals in Europe versus the US over last decade
37.9%: AI's share of European VC deal value YTD 2025, up from 27.7% in 2024
5.4% vs -1.6%: Five-year CAGR of PE-backed company growth versus decline in listed companies
32.6%: Share of UK PE deals involving US sponsors YTD—highest of any European market
Key Trends to Watch
The Klarna Effect: Klarna's €12.7 billion IPO generated €2.8 billion for Sequoia (6x+ return), but overall exit volume remains reliant on a handful of megadeals
Stockholm emergence: Stockholm is challenging London, Paris, and Berlin as a premier hub; Lovable reached $100M ARR in eight months (faster than OpenAI), and EQT now has €266 billion AUM
AI catch-up trajectory: Europe lags US AI penetration (37.9% vs 63.3% of deal value) but has room to grow as valuations remain attractive relative to US benchmarks
Take-private pipeline: Record delistings continue as sponsors find value acquiring public companies at discounts
The Wrap
Europe's private capital markets are becoming deeper and more influential, fueled by US capital and a booming AI sector. The structural question remains whether the shortage of public listings is cyclical or permanent—if structural, IPOs may no longer be "the Holy Grail of corporate success."
Read Full Report PitchBook 2026 EMEA Private Capital Outlook