2009 represented a tough year for the European private equity industry, according to the EVCA. A total of EUR 21 billion was invested last year, which accounted for only 29 percent of the new equity investments in 2007. Still, more than 4 000 companies received private equity funding last year.

The decrease in the invested amount last year, can mainly be attributed to the lack of large buyout deals. In 2009, there was only three European buyout investments valued over EUR 1 billion. Instead, there was a 23 percent increase in growth capital investments, thus outnumbering the large-cap buyout deals.

Divestments experienced also a decrease in 2009, with the amount divested at cost falling to 29 percent below their 2008 level. Write-offs accounted for a third of the divestments, and increased to EUR 3.2 billion. Excluding write-offs, 1 215 companies was exited for a total value of EUR 6.6 billion in 2009. 42 percent of these exits were trade sales, while 14 percent were secondary transactions. Consumer goods and retail were the most divested sectors, accounting for 22 percent of the total exited amount. These sectors were followed by communications and industrial products.

2009 was also a difficult year for fundraising. Only 184 funds closed in 2009, a severe decrease from the 316 that closed in 2008. The total amount raised in 2009 decreased to EUR 13 billion, less than the two largest funds raised in 2008. Buyout funds were most affected by the difficult market conditions, with a 86 percent drop in the total amount raised. Of the funds that closed in 2009, venture capital funds dominated representing 34 of the 49 funds that reached a final close last year.