Last year was undoubtedly a difficult year for investors, but 2021 is showing signs of recovery for alternative assets in Europe. In the first half of the year, €236bn worth of private capital transactions were recorded in the region, already nearing the €284bn total for the whole of 2020. Infrastructure, in particular, has proven to be a beacon for alternatives investors; in the first half of the year deal value already equaled the 2020 total of €87bn. Furthermore, fundraising in private equity, venture capital, private debt, and natural resources will all likely beat 2020 figures if the current pace is maintained. Even in real estate, which has been rocked by profound changes, activity is increasing.

The economic picture for the region certainly looks bright. The EU is forecasting 4.2% growth in GDP in 2021 which, albeit relative to a dismal 2020, could register as some of the strongest growth for the region in recent decades. The opportunities presented by infrastructure assets should not be overlooked here, as governments in the region push infrastructure investment to stimulate economic growth and help meet carbon reduction targets. Furthermore, although struggling to find traction currently, the private debt industry looks set to grow as government support measures are withdrawn across the region.

Read our new Markets in Focus report, in collaboration with Amundi, to explore the key trends in each asset class and leading markets in Europe, and to discover the latest proprietary data on private capital fundraising, hedge funds, performance, deals, and much more. Plus, read expert commentary from industry leaders in Europe on the strategies that will deliver results in this environment.