Global investors are pivoting away from US risks and discovering a continent primed for growth. Liquidity improvements, bold fiscal stimulus, and innovative fund structures are driving a surge of allocations into European assets.
It’s not just diversification – it’s opportunity. As one expert at Funds Europe’s recent private markets roundtable put it: “The investment proposition in Europe stands on its own.” From Germany’s €5 billion infrastructure push to UK defence spending, fiscal tailwinds are creating fertile ground for private credit and venture capital.
Private credit is stealing the spotlight. Investors overexposed to private equity are finding attractive, risk-adjusted returns in shorter-duration credit strategies. One manager described it as a “virtuous circle: companies need financing, and investors need new avenues.”
Semi-liquid fund structures are adding momentum, too. With innovations like the UK’s LTAF and the EU’s Eltif, investors gain more frequent liquidity windows while managers extend horizons and deepen transparency. The result is a structural shift. Europe is no longer just a safe haven from US volatility – it’s an ecosystem of growth, supported by fiscal investment, evolving liquidity models, and strong demand for private credit.
*Dive into more detail with our private markets special report here.