Megan Harper
The 2024 European Private Equity Market Insight Report by Arthur D. Little, in collaboration with Invest Europe, highlights how artificial intelligence is transforming investment strategies and internal operations across the private equity landscape. This fifth edition explores shifting sectoral priorities, ESG integration, and regulatory adaptations amid global volatility.
AI Takes Center Stage
- Over two-thirds of General Partners (GPs) are actively targeting AI and deep tech investments for deal sourcing, operational optimization, and risk management.
- AI is also being adopted internally, streamlining processes and enhancing fund performance visibility.
Evolving Sectoral Preferences
- Defense and AI sectors lead in GP investment focus due to geopolitical pressures and rapid innovation.
- Renewables have declined in priority as firms reassess energy transition timelines and ROI expectations.
ESG and Regulation
- ESG is no longer a differentiator but a baseline—83% of GPs now classify funds under Article 8 or 9 of the SFDR.
- Regulatory compliance with CSRD and SFDR is influencing fund design and reporting practices.
Fundraising and Investment Outlook
- Despite uneven fundraising, 27% of GPs expect an uptick in activity over the next year.
- VC investment into AI-driven and deep tech startups is gaining traction, signaling long-term confidence.
Why This Report Matters
- Provides actionable insights on integrating AI into private equity dealflow and operations.
- Explores how regulatory shifts are guiding fund strategies and disclosures.
- Identifies AI and defense as key emerging sectors in the European investment ecosystem.
“AI is no longer a niche interest—it’s becoming foundational to how European private equity operates and scales.”— Arthur D. Little, 2024 Report
Explore our interview with Ellis Nguyen of Lazybird on how automation is reshaping early-stage investment decisions with AI insight tools.
Read how Leo JB Smith of JBS Studios is navigating fundraising by aligning with AI-driven investor expectations.
For more information, visit: https://www.adlittle.com
