Preqin and Amundi announce the results of the 2nd annual Alternatives in Europe report

Tuesday 09 July 2019

Expertises

The report finds that although the macro-economic picture for Europe has been muted in the past 24 months, the alternatives industry in the region is moving from strength to strength with alternative assets hitting  €1.62tn in AUM – up almost €300bn in just three years.

 

Event Preqin

First launched last year at the initiative of Amundi, this unique market study report examines the alternative industry’s second biggest region, bringing clarity and insights on a quite fragmented European market where private equity, real estate, private debt, infrastructure are booming.

Amy Bensted, Head of Data Products, Preqin and Pedro Antonio Arias, Global Head of the Platform of Alternative and Real Assets of Amundi, presented the exclusive key findings of the report, which, for the first time this year, is providing country-focused data and analysis for each major European country, such as the UK, France, Germany, Italy... For its second year, the study fully encompasses the diversity and the granularity of alternatives in Europe, and is reaching a new level in terms of reducing the asymmetry of information on difficult-to-access private assets.

2018 has seen record activity across most alternative asset classes, with private equity poised to overtake as the largest asset class in the region at €559bn. The opportunities present in Europe are apparent to investors globally – almost half of the institutions with a preference for the region are now based in North America, with significant proportions coming from the Middle East and Asia.

 Key Facts on Alternatives in Europe:

  • Europe-based alternatives funds now hold €1.62tn in assets under management.
  • The UK remains the largest market by far, with fund managers based in the country holding €948bn. 2018 saw the country match 2015 in activity levels, reversing a decline seen in the wake of the Brexit vote.
  • Hedge funds are the largest asset class (€608bn), but assets fell by 9% in 2018 due to underperformance. Private equity, meanwhile, has grown by 8% in the first half of 2018 to reach €559bn.
  • 2018 saw record deal values for private equity buyout, venture capital and infrastructure transactions in Europe. As a result, total private capital deals reached a record €375bn.
  • There are 6,300 fund managers and 3,000 investors based in Europe that are active in alternative assets in 2019.
  • 3,900 investors now target private equity investments in Europe. The largest proportion (48%) are based in North America.
  • The largest proportions (80%) are targeting private equity and real estate investments, with 59% seeking hedge fund investments and minorities targeting real assets and private debt.

 

 

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