Mid-market fundraising in the UK hit an all-time record in 2016 despite Brexit volatility. European fundraising levels grew for the third consecutive year with €17.4bn raised.
Sixty four mid-market vehicles raised an average of €273m across Europe last year, up on 2015’s average of €272m for 61 vehicles, according to Acanthus’ European Mid-Market fundraising review. The report puts the increase down to a higher number of emerging managers raising first-time vehicles.
In the UK, 22 mid-market vehicles raised €6.4bn while Scandinavia also achieved an all-time high, raising €3.5bn across ten funds.
At the other end of the spectrum, Benelux and France saw a dip in the amount of mid-market capital raised. Benelux saw a 67 per cent slip to €800m while French funds slipped back 63 per cent, raising €900m.
The DACH region, Italy and Iberia saw capital raising levels remain flat.
In the report’s outlook for 2017, Acanthus predicts central and eastern Europe (CEE) will “prove fertile ground for a fundraising renaissance”. The region saw a 300 per cent increase in capital raising last year sitting at €1.2bn.
Although CEE struggled through the global financial crisis, the region is now benefiting from a positive economic backdrop. Acanthus found that CEE managers are developing “increasingly local investment strategies as a route to delivering outperformance”.
A series of strong exits in the region is also aiding managers’ ability to re-attract international institutional capital. A separate study compiled by Invest Europe showed private equity investment in CEE hitting a three-year high.