Private Equity in Europe

Europe is known for a lot of things – good food, amazing vacation locations, obsessive regulations, slow economic growth, densely packed housing, and a host of others.

Finance is also something Europe generally does well.  This led us to wonder which European country  has the largest private equity investments as a percentage of Gross Domestic Product (GDP).

Take a Guess

Before looking at the data, take a guess at which country you think is the top place – as a percentage of GDP – for private equity investments – and which country is the worst.

Perhaps Germany, the strongest country, perhaps the only country keeping the Eurozone together.  Perhaps France, with its well-known technology sector.  Perhaps Spain, a large country in the center of Europe with strong ties to the less developed countries of South America.  Perhaps the Baltic countries because of their ties to Mother Russia?  Perhaps a small country, where a few big private equity investments could move a country up the list very quickly?  Take your guess.

The Top Ten

Here’s a look at the list.  Fascinatingly, on top of all other European countries is Luxemboug, at 1.25 percent.  Luxembourg comes up as the only country above 1 percent.

The remaining members of the top 10 include Denmark at 0.65 percent, the Netherlands at 0.50 percent, Finland at 0.50 percent, the United Kingdom at 0.48 percent, Norway at 0.45 percent, France at 0.38 percent, Sweden at 0.38 percent, Belgium at 0.34 percent, and Austria at 0.32 percent.

Source: Statista

The Bottom Ten

What about the bottom ten?  Interestingly, the worst country for private equity investments as a percentage of GDP is the Czech Republic at 0.01 percent.  Other bottom dwellers include Romania at 0.09 percent, Portugal at 0.09 percent, Other CEE at 0.12 percent, the Baltic countries at 0.13 percent, Spain at 0.14 percent, Hungary at 0.15 percent, Italy at 0.16 percent, and Poland at 0.19 percent.

The Middle Group

Three countries that fell in the middle are somewhat surprising.  These are Ireland at 0.31 percent, Switzerland at 0.22 percent, and Germany at 0.22 percent.

Conclusion

In looking at the most recently available data on private equity investments as a percentage of GDP in Europe, some surprising findings emerge.  Countries we might have expected to see at the top, or the bottom, were not there, but rather, fell in the middle of the pack.

Of all the countries in Europe, Luxembourg came in with the highest private equity activity – the only country above 1 percent. The other top countries for private equity investments ranged from 0.63 percent to 0.32 percent.  That rounds out the top ten.

The bottom ten started their lows at 0.01 percent.  The other nine then ran the gamut from 0.06 percent up to 0.19 percent.