European private-equity firms are responding to the wall of money coming their way by opening new offices in new countries apace. Holger Rossbach, of Cambridge Associates’ private investment group in London, explains that the “strong climate for fundraising is allowing many mid-market firms to grow into new geographies,” with regard to the recent uptick of UK-based private equity firms building presence abroad.
He added, “Pan-European large cap managers are currently raising funds at record levels, and part of their future deployment strategy is often doing deals outside of Europe… Since the U.S. market is particularly deep in the large-cap segment—especially in comparison to Europe—the natural next step for these firms is to open an office there.”
The industry has quite an encouraging record in expanding geographically—even when going into new continents. “When U.K. or European firms decide to go overseas, the underlying investment activities we’ve observed have often been successes,” Rossbach concluded.
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