European private markets are set to surpass €5 trillion by the end of the decade, buoyed by the rapid growth of infrastructure and a favorable shift in investor sentiment toward the continent, according to BlackRock Inc.

The US investment giant said Monday that investment in infrastructure grew faster in the region than in any other asset class over the last five years, with €55.4 billion raised for Europe-based funds in the first half of 2025, beating the total amount raised the year before.

Structural tailwinds of the “once-in-a-generation transformation of the energy ecosystem has underpinned the growth in infrastructure,” according to Gonzalo Garcia, partner at BlackRock unit Global Infrastructure Partners. He also pointed toward the digital transformation, the rewiring of global supply chains and the need to retool aging assets as reasons for European market outpacing others.

Private markets globally are estimated at $13 trillion, propelled by the trend of companies choosing to stay private for longer. Companies such as SpaceX and OpenAI have dispelled the belief that the only way to raise significant levels of capital is from listing on stock markets. For Europe, increased geopolitical uncertainty in the US following President Donald Trump’s tariff policy has provided some stimulus as investors realized the opportunity that centuries-old assets can provide.

More than 90% of companies in Europe and the UK with revenue exceeding $100 million annually are not listed, highlighting the need for private markets financing. Private credit is part of that and the BlackRock predicts that the asset class in Europe will almost double by the end of the decade to over €800 billion.

Private markets globally are estimated at $13 trillion, propelled by the trend of companies choosing to stay private for longer. Companies such as SpaceX and OpenAI have dispelled the belief that the only way to raise significant levels of capital is from listing on stock markets. For Europe, increased geopolitical uncertainty in the US following President Donald Trump’s tariff policy has provided some stimulus as investors realized the opportunity that centuries-old assets can provide.

More than 90% of companies in Europe and the UK with revenue exceeding $100 million annually are not listed, highlighting the need for private markets financing. Private credit is part of that and the BlackRock predicts that the asset class in Europe will almost double by the end of the decade to over €800 billion.

“With the majority of Europe’s small-to-medium enterprises owned privately, it is essential that these companies can turn to deep pools of capital to fund their future growth,” said BlackRock’s Vice Chairman Philipp Hildebrand.

Still, some are calling for caution in private markets, especially after the recent collapse of Tricolor Holdings and First Brands in the US.