The private markets landscape in Europe looks set for a profound transformation. What began as tactical diversification away from US dollar risk could blossom into a strategic reappraisal of the continent’s long-term potential. Global limited partners – from Australia to China – are now knocking on European GPs’ doors, driven by evolving fund structures, dynamic fiscal policy and the promise of compelling risk- adjusted returns.
“This kind of message is coming through in almost every conversation we’re having with LPs who have meaningful existing US dollar exposures,” says Adam Baghdadi of Arrow Global, capturing investors’ unease with trade-policy headwinds. Yet Marc Chowrimootoo of Hayfin argues that Europe’s appeal isn’t merely a hedge: “Trump’s presidency has been a catalyst for what should have happened anyway.” He points to structural opportunities – particularly in private credit – where European corporates starved of bank funding are seeking alternative capital.
Funds Europe’s report into private markets investing, carried out in partnership with US Bank, draws together a number of leaders from the industry who discuss investment drivers for Europe and the opportunities that international investors perceive to be before them thanks to new ‘evergreen’ private markets vehicles now available in the UK and Europe.
Participants in our report were:
David Hedalen, head of private markets research, Aviva Investors
Emmanuel Deblanc, CIO private markets, M&G Investments
Adam Baghdadi, head of lending, Arrow Global
Marc Chowrimootoo, portfolio manager, Hayfin
Vikram Bhandari, multi-asset CIO, Schroders Capital Solutions
Thomas Duetoft, senior loan strategy portfolio manager, Pemberton
David Kubilus, chief commercial officer, US Bank
Ken Somerville, head of global fund services, Ireland, US Bank
*Read the full report here.
