2020 Alternative Assets in Europe

Paris, Wednesday 09 September 2020

Expertises

2020 Alternative Assets in Europe Preqin report

   

  

Preqin is pleased to announce the launch of its 2020 Alternative Assets in Europe report, produced in partnership with Amundi for the third year in a row.

The report – the largest study of its kind – looks at how the industry has developed in key European markets, and what will drive activity in the coming months and years.

Key Takeaways 

  • Total assets under management for Europe-based alternatives funds have reached €2.00tn for the first time as of the end of 2019. This is up from €1.79tn at the end of 2018, and €1.39tn at the end of 2015.

The report finds that Europe-based alternative asset fund managers now hold €2.00tn in assets under management as of December 2019, with the private equity (€795bn) and hedge fund (€609bn) sectors making up the majority. The growth of the European alternatives industry has been impressive, with an increase of more than €200bn in just 12 months. In fact, AUM has grown by 44% between December 2015 and December 2019, and Europe now accounts for 21% of the global industry.

  

  • COVID-19 has dampened activity across the region, but the industry remains robust and vibrant, and there are indications that activity may rebound as restrictions are lifted:

As with the wider financial landscape, the COVID-19 pandemic has caused significant disruption to the alternatives industry in Europe, with fundraising and dealmaking being directly impacted since the start of the year. But while activity is not at the record highs we have seen in recent years, funds are continuing to raise capital and managers are putting money to work, as investor appetite remains strong. Alternative assets are seen as portfolio diversifier and volatility dampener, and overall as a source of appealing risk-adjusted returns in a world of persistently low interest rates and volatile equities.

  

  • The UK is the largest market, with €1,180bn in AUM, followed by France (€242bn); since the beginning of the year, Germany overtook the UK as the most active private capital market by total deal value for the first time.

   

Europe faces significant challenges in restructuring, reforming, and growing its economies. The good news is that alternative assets can play a valuable role in helping to unlock the region’s potential. Europe has a dynamic and successful industry, fully equipped and ready to meet the changing needs of all stakeholders.

comments Mark O'Hare, Preqin CEO

It is encouraging to see that despite the significant challenges of the Covid-19 pandemic, the allocation of capital to alternative asset classes continues to gather momentum. Our investors are showing increased appetite for private equity, private debt, real estate and infrastructure, whether through funds or alternative multi-management solutions. We believe the crisis will create a number of opportunities in alternative assets as the economy rebounds, and European investors are watching this closely.

comments Dominique Carrel-Billiard, Global Head of Real & Alternative Assets at Amundi

Go to the Report