Pollen Street Raises €2bn Fund V - InforCapital

Pollen Street Capital, the UK-based private equity firm, has wrapped up its latest flagship vehicle, Private Equity Fund V, with a total of €2 billion in capital. That includes €1.5 billion in fund commitments and another €500 million in co-investment capacity — a huge leap from its original €1 billion target. The fund was oversubscribed, even surpassing its €1.2 billion hard cap, and marks an impressive 85% increase over its previous fund.

This strong result reflects growing global investor appetite for European mid-market opportunities, especially in sectors like financial services and business solutions. Backers include a wide range of limited partners, from pension funds and insurers to sovereign wealth funds, asset managers, and family offices.

It’s not just Pollen Street making moves. Other major players have been raising significant capital too:

ICG closed its Europe Mid-Market Fund II at €3 billion — triple the size of its predecessor. Oakley Capital secured €4.5 billion for its sixth fund, while AURELIUS raised €830 million for its latest vehicle in just five months. Marlin Equity and Thoma Bravo have also launched or closed large funds targeting mid-sized European tech and services companies.

The momentum is clear: in Q1 2025 alone, €23.7 billion was raised across 22 mid-market private equity funds in Europe. With stable debt markets, solid returns (averaging 17% IRR), and growing demand for tech-enabled businesses, the mid-market has become a hotbed of activity.

Fund V sticks to Pollen Street’s proven strategy: investing in growth-oriented businesses that benefit from digital transformation and operational upgrades. About 50% of the fund has already been deployed into companies like Keylane (insurance software), Mattioli Woods (wealth management), Assessio (talent tech), and OrderYOYO (restaurant e-commerce).

Limited Partners include:

• Employees Retirement System of Rhode Island (ERSRI): $40 million

• Ireland Strategic Investment Fund (ISIF): $58 million

• Los Angeles County Employees’ Retirement Association (LACERA): $150 million

• Teacher Retirement System of Texas: Amount undisclosed

With fundraising activity still strong and plenty of dry powder waiting to be put to work, firms like Pollen Street — and its growing list of peers — are well-positioned to shape the next phase of European private equity.