According to PitchBook’s 2026 EMEA Private Capital Outlook, Europe’s corporate landscape is entering a new phase: by the end of 2026, the number of PE-backed companies is expected to reach 2.3 times the number of publicly listed firms—an all-time high.
This shift has been building for more than a decade. Since 2014, the European private equity universe has doubled to roughly 13,800 companies, while public markets have remained stagnant, with listed companies fluctuating between 5,700 and 7,000 for nearly twenty years.
The structural imbalance widened further in 2024, when PE-backed firms became twice as numerous as public companies for the first time.
PitchBook attributes the continued rise of private equity to steady capital inflows and the broadening investor base, including private wealth channels and semi-liquid fund structures.
In contrast, public markets remain constrained by thin IPO pipelines, ongoing delistings –particularly in London – and a continued trend of European companies seeking listings in the US for better liquidity and valuations.
Muted exit conditions since 2022 have also encouraged sponsors to rely on secondaries and take-private transactions, reinforcing the preference for staying private.
Over the past five years, PE-backed companies grew at a 5.4 percent CAGR, while the population of listed companies shrank by 1.6 percent annually.
While a strong rebound in IPO activity could temper this divergence, current market signals point to private equity extending its footprint across European corporate ownership in 2026.
