European Megafunds (based on PEI 2023)
PEI 2023 Fundraising Rankings but for the top 15 firms with European headquarters. Would you classify all of these as 'European Megafunds' or would you drop some based on comp/fund performance. Not much knowledge of all shops but would personally drop AXA, PAI and Eurazeo from the mf discussion. Maybe drop Astorg too?
- EQT (Raised - $101.66 billion, Headquarters - Stockholm)
- Hg (Raised - $51.05 billion, Headquarters - London)
- CVC Capital Partners (Raised - $41.75 billion, Headquarters - Luxembourg)
- Permira Advisers (Raised - $34.80 billion, Headquarters - London)
- Cinven (Raised - $32.72 billion, Headquarters - London)
- Partners Group (Raised - $26.68 billion, Headquarters - Zug)
- PAI Partners (Raised - $23.67 billion, Headquarters - Paris)
- BC Partners (Raised - $20.27 billion, Headquarters - London)
- Bridgepoint (Raised - $18.01 billion, Headquarters - London)
- Ardian (Raised - $17.85 billion, Headquarters - Paris)
- Apax Partners (Raised - $13.58 billion, Headquarters - London)
- Eurazeo (Raised - $13.17 billion, Headquarters - Paris)
- Astorg Asset Management (Raised - $12.77 billion, Headquarters - Luxembourg)
- AXA IM Alts (Raised - $9.60 billion, Headquarters - Paris)
- Waterland Private Equity Investments (Raised - $9.25 billion, Headquarters - Bussum)
Based on the WSO Dataset and insights from professionals in the field, not all firms with significant fundraising achievements are automatically classified as 'European Megafunds' in the traditional sense. The classification often depends on a combination of factors including fund performance, sector focus, and the competitive landscape within private equity. Here's a breakdown considering your query and the context provided:
EQT, Hg, CVC Capital Partners, Permira Advisers, Cinven, and Partners Group are often recognized as leading players in the European private equity space. Their substantial fundraising amounts, alongside their broad investment strategies and strong performance records, solidify their positions as megafunds.
PAI Partners, Eurazeo, and AXA IM Alts might be considered for exclusion from the 'megafund' category by some, based on comparative fund performance or specific investment focus areas that might not align with the broader megafund strategy. For instance, Eurazeo and AXA IM Alts have diverse investment strategies that extend beyond traditional private equity, which might affect their classification as pure-play PE megafunds.
Astorg Asset Management presents a borderline case. While it has demonstrated strong fundraising capabilities, its focus on specific sectors and a slightly lower fundraising total compared to the top-tier firms might lead some to question its megafund status. However, it's important to consider the firm's performance and strategic growth, which could strengthen its case as a megafund.
BC Partners, Bridgepoint, Ardian, Apax Partners, and Waterland Private Equity Investments have shown significant activity in the European market. Ardian, for example, while having a strong fundraising record, is often recognized for its fund of funds and infrastructure investments, which might influence its classification as a traditional PE megafund.
In conclusion, while fundraising size is a critical factor, the classification as a 'European Megafund' also heavily depends on the firm's investment strategy, performance, and market perception. Firms like EQT, Hg, and CVC are often undisputed in their megafund status, while others might be subject to more nuanced consideration based on their specific characteristics and market positioning.
Sources: Q&A: European PE professional at a Large-cap Megafund, Q&A: European PE professional at a Large-cap Megafund, PE Ranking - Europe, Private Equity in London - US MFs vs European Funds
Ardian Is a bigger player in the secondaries space, BC has had a massive fall from grace, Astorg/AXA/Eurazeo Just no and partners group doesn't do as much direct pe investing. Hg also just cannot be classified as an mf at all with their strategy, but still a tier 1 place to work in europe. Bridgepoint is definitively UMM. Waterland excellent performance and another tier 1 place to work, not definitively MF though.
Definitive European MFs: CVC, EQT, Permira, Cinven, Apax
See this thread for more details: https://www.wallstreetoasis.com/forum/private-equity/criteria-for-funds…
One basic classification for MFs from that thread (though this misses out a few listed above):
waterland far too small to be considered mf
Apologies, slight oversight (was quite literally contradicting myself there). Also editing out my dig at apax's recent performance as I know I would have been barraged with MS otherwise.
Why can’t Hg be classified as a MF? Just curious on your thought process
Even I as a prospect know why. Look into their strategy
And they all pay like shit except CVC
I work at one of those places above, funny I know people can change WSO titles
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