"Private Equity Can Transform Europe from 'Sick Man' to Champion Through Strategic Sector Focus, Says Golding Capital's Boege"

Daniel Boege, partner at Golding Capital Partners, discusses how private equity firms can enhance European competitiveness amid widespread concerns about the continent's economic struggles in an interview from IPEM Cannes 2025.

The conversation covers strategies for improving portfolio company performance, building European market champions, and countering negative perceptions that have led to Europe being labelled the "sick man of the world."

Golding Capital Partners is a Munich-based asset management firm with approximately €15 billion in assets under management for predominantly German-speaking institutional investors across private equity, infrastructure, and private credit investments.

Key highlights from the interview:

• Three-pronged approach to portfolio enhancement: Daniel outlines how private equity firms can improve their portfolio companies through strategic guidance, for example by encouraging faster growth, market expansion, and industry consolidation, leadership development such as bringing in stronger management teams, and operational excellence through driving innovation and improving company infrastructure and functionality.
• Building European champions: Private equity can enhance European competitiveness by scaling local champions into pan-European leaders, helping them gain international relevance and providing access to global capital markets. This requires better marketing of the quality of Europe to ensure international investors appreciate the quality of businesses in the region.
• Addressing Europe's negative perception: Boege emphasizes the fact that private equity focuses on investing in niche leaders and local champions, rather than attempting to solve the macroeconomic problems that have led to Europe's reputation as the "sick man of the world". He points out that the negative headlines often focus on struggling sectors like automotive and chemicals, where private equity tends not to invest.
• Sector-selective investment strategy: European private equity firms are already strategically investing in growing sectors while avoiding those most exposed to energy costs, demographics, and other structural challenges facing Europe. This approach will, Boege argues, help shift the European economy toward more resilient and faster-growing industries.
• Optimistic outlook: Despite macro challenges, Daniel expressed confidence that private equity can continue to contribute to Europe's economic transformation by supporting the growth of fast-growing sectors that are less vulnerable to the current economic headwinds Europe is experiencing.