The European Private Equity and Venture Capital market is evolving rapidly, with continuous changes shaping the investment strategy and choices of institutional and private investors.
The growing importance of sustainable investments, technological innovation and diversification of growth strategies create a dynamic landscape, where opportunities coexist with challenges and require careful planning and strategic positioning.
The Private Equity & Venture Capital Spotlight section of the 11th Cyprus International Funds Summit & Expo, organised by CIFA and Invest Cyprus, focused on the opportunities and challenges shaping Europe's private equity markets, highlighting topics such as ESG, impact investing and developments in the fields of technology and innovation.
Petros Krappas, CFA, Managing Director, Cambridge Associates, analysed the performance of European Venture Capital funds relative to Private Equity, noting that in the long term, European Venture Capital outperforms and moves in line with the performance of the corresponding US markets. However, he emphasised that the dispersion of returns in Europe remains higher, while the PPMs of European funds are lower compared to the US.
Despite European companies growing at levels comparable to US ones, managers need to work harder to achieve returns. He noted that fundraising activity has returned to normal levels, while investment activity remains subdued compared to 2021 and 2022, with fund size both a challenge and a tool.
George Dimopoulos, Partner, VentureFriends.vc, shared his experience as an investor who started in Greece and expanded internationally, presenting his organisation’s investment philosophy and criteria. Through characteristic examples, he presented cases of portfolio companies that started as local startups in Europe and MENA and evolved into international leaders, highlighting the importance of strategic support and investment in global ambition.
Spyros Ierides, CFA, Chartered MCSI, Manager, Asset Management, CISCO, Bank of Cyprus, focused on achieving sustainable portfolio performance, noting that the macroeconomic environment remains favorable despite the challenges. He highlighted the opportunities for Private Equity and Venture Capital in sustainability technologies, which can enhance Europe’s competitiveness and strategic autonomy. He highlighted the continued importance of ESG investments, with potential in areas such as artificial intelligence, clean energy and healthcare. He also underlined the critical role of the European Capital Markets Union in directing more institutional and private capital towards a more sustainable and prosperous future.
Dimitrios Batzis, Head of Southern CEE & Mediterranean countries, Schroders Investment Management (Europe) S.A., analysed the opportunities offered by Private Equity evergreen semi-liquid funds, highlighting how they provide substantial access to investments in private companies with higher growth potential than public markets. He emphasized that investors invest directly in well-diversified portfolios, without progressive capital payments, while the funds’ liquidity tools offer flexibility, such as monthly subscriptions and quarterly redemptions of up to 5% of NAV, with a low minimum participation amount.
Finally, Pangratios Vanezis, Board Member, Head of Enterprises and Startups, KPMG Startup Innovation Lab, KPMG Cyprus, presented the opportunities offered by the startup ecosystem in Cyprus and the wider region, highlighting the importance of innovation and synergies between investors and startups for value creation and growth. Referring to the global investment landscape, he noted that the venture capital market is stabilising above $10 billion, which he described as a positive development, adding that “Europe is on an upward trajectory”. He also pointed out that investors are moving away from fast-paced investments and are now turning to more strategic placements, working closely with startups until their exit phase.
The discussion was moderated by Marios P. Charalambides, Board Treasurer, Cyprus Investment Funds Association (CIFA)/ Partner, Assurance, Grant Thornton (Cyprus).
(Source: InBusinessNews)
