Trump exacerbates the slowdown in private equity sales in Europe

If the private equity transfer market was already in trouble in Europe, Liberation Day, led by US President Donald Trump on April 2, contributed to its further collapse. The potential impact of a yet-to-be-specified tariff crisis on European-owned companies has triggered alarm bells among funds, which are further exacerbating the slowdown in sales.

Between April and June, private equity in Europe saw €48.8 billion in divestment transactions , according to provisional data from the analysis service Pitchbook . This amount is almost 22.8% lower than the €63.2 billion mobilized by fund transfers in the first quarter of the year.

The comparison with the same period in 2024 is even worse. At that time, private equity investments in this region were sold for €93.4 billion . Therefore, compared to a year ago, the figure recorded in exit transactions has been reduced by 47.7%, also based on information from the Pitchbook platform.

This trend in transfers in the region reveals that the surge in fund sales predicted by some industry experts has failed to materialize, and that the already difficult period these transactions have been going through will continue even further. Furthermore, the aggressive trade policy announced by Trump , which took shape on Liberation Day , has had a greater impact on the market in Europe than in other parts of the world.

In the United States , the main powerhouse for alternative assets, the volume of divestments in the second quarter (calculated by Pitchbook at $118.5 billion, around €100.6 billion) fell compared to the first quarter of 2025, but not compared to the same period last year. This indicates that funds are more concerned about the impact of tariffs on groups with holdings in the Old Continent.

Faced with widespread economic uncertainty, "many private equity managers are holding onto their guard , keeping companies in their portfolios for longer periods of time and until the market clarifies," explain industry professionals. And this caution has been even more pronounced in funds deployed in Europe, especially in light of the latest ingredient in global instability: Trump's tariffs.

The slowdown in outflows already affecting private equity in Europe and globally is therefore worsening. "The decline in outflows over the last two years has left funds with a significant volume of companies in their portfolios , many of which were acquired at premium valuations during the market peak in 2021. The moderate recovery in sales activity last year has not been sufficient to absorb this asset accumulation," explains the consulting firm Alvarez & Marsal (A&M) .

Now, concerns about import and export taxes on products and services are complicating this issue. " Exiting investments is expected to be further delayed as sellers seek prices higher than buyers are willing to pay in the current market," A&M added.

The positive note? This lack of incentives for portfolio rotation by funds is leading to a strong surge in continuation vehicles , which asset managers are launching to maintain their stake in companies while allowing them to renew their investor base. This type of instrument is on track to reach a new high in European investment, with more than €5.3 billion absorbed in the first half of the year.