By Björn Schubert

As the private equity landscape in the DACH region continues to evolve, Roland Berger's latest report provides insights into the current state of the market. While the overall economic growth in Germany remains muted, private equity firms are adapting to the changing environment by adjusting capital structures through increasing use of equity tickets, focusing on proprietary deal sourcing and investing in alternative asset classes, such as infrastructure.

Market dynamics and economic context

While Germany's overall economic growth has shown signs of stagnation, private equity firms are seizing the moment to explore, e.g., alternative asset classes, including infrastructure investments. This strategic pivot is not just a response to market conditions but also reflects a broader trend towards collaboration with founders and management teams through innovative co-investment models.

Trends in deal activity

Deal activity in the region has seen the year-over-year transaction volume decline slowing, with Europe as a whole recording a decline in transaction volume of -5% in 2024 compared to 2023. While the UK and Ireland, as well as Spain and Portugal, experienced growth, DACH, Nordics and France experienced the strongest YoY declines. The continued financial uncertainty and high valuations in the technology, software and digital solutions industry have contributed to the general decline.

Despite the challenging environment, private equity firms are doubling down on systematic post-merger integration (PMI) strategies aimed at building integrated platforms. The integration of digital solutions and artificial intelligence is becoming paramount, as these technologies help streamline operational processes and eliminate inefficiencies. Our report emphasizes the importance of these innovations in driving value creation for portfolio companies.

The rise of infrastructure investments

One of the standout findings of our research is the increasing specialization of private equity funds in infrastructure investments . This trend is largely fueled by governmental stimulus programs aimed at revitalizing the economy. As firms navigate this evolving landscape, the focus on infrastructure not only presents opportunities for growth but also aligns with broader societal goals.

Trends in the DACH private equity market:

1. Equity up, debt down
2. Rethinking deal origination
3. Infra is the new black
4. Buy-&-build 2.0: Integration is king
5. Holding longer, exiting smarter
6. Shifting capital flows: Europe in the global spotlight

Outlook for H2 2025

As we look ahead to the second half of 2025, there is a sense of cautious optimism within the private equity market. While uncertainties regarding the scope and timing of governmental stimulus programs remain, the identification of digitalization and AI as key drivers for value creation signals a potential turning point. Our analysis suggests that the private equity market in the DACH region has likely reached its trough and is poised for recovery. H1 2025 (as of June 24th 2025) recorded an increase of +6% compared to H1 2024. Especially the first quarter in 2025 was strong (+40% vs. Q1 2024), indicating a promising upswing.

To learn more about the latest trends and insights in private equity in the DACH region, download our report. Gain valuable perspectives that can inform your strategies and decisions in this dynamic market landscape.

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