Latest developments in the world of private equity this week
Headline: Roark Capital and RRJ Capital Make Major Moves in European Market
In the bustling world of private equity, two significant deals have been announced in recent weeks.
Firstly, Roark Capital, an Atlanta-based private equity firm with an impressive portfolio that includes Arby's, Culver's, and Subway, has made another foray into the fast-growing restaurant franchise sector with its acquisition of Dave's Hot Chicken. The details of the deal are yet to be disclosed, but this move aligns with the growing interest in franchise-based businesses, known for their predictable royalty revenue and lower operational costs.
Meanwhile, VistaJet, a leading global business aviation company, is receiving a $600 million private equity investment from RRJ Capital, one of Asia's largest private equity firms. This investment will provide VistaJet with fresh capital as it prepares for a public listing within the next three years. The investment will take the form of convertible preference shares, and investors can convert their holdings into ordinary shares once VistaJet goes public. The IPO venue for VistaJet is yet to be determined.
These investments are part of a broader trend in the European market, which has seen a surge in stake sales driven by the surge in European stock markets. The Agnelli family's sale of its stake in Ferrari NV has contributed to European block trades having their strongest start in two decades.
The market in 2025 is characterized by a cautious yet evolving market, with deal activity growing by 2% compared to the previous year but remaining down 7% from H2 2024. Despite this, pockets of resilience are visible in defense, AI, and secondaries markets.
Private equity firms are increasingly investing in defense-related businesses, driven by NATO's commitment to increase defense spending to 5% of GDP by 2035 and Germany’s €100 billion investment. Major global capital allocators like Blackstone, CVC, EQT, and KKR collectively committed around €150 billion for AI opportunities in Europe over the next five years. Partnerships such as NVIDIA with French startup Mistral AI highlight Europe's emerging strength in AI innovation.
Europe's ESG funds manage over €600 billion, with private equity targeting consumer businesses aligned with health and sustainability trends and focusing on industrials to support decarbonization goals. Infrastructure private equity is dominant in capital raised, with ongoing investments in energy sectors rebounding after previous pullbacks.
Fundraising is muted overall but supported by ample "dry powder" (available invested capital). Regulatory developments in the EU are expected to broaden private equity’s investor base by allowing more individual investor participation. The exit environment remains challenging with extended hold periods and increased continuity vehicle use to generate liquidity.
These factors contribute to a cautious yet hopeful sentiment for a more active market starting early 2026. The increase in defense spending and AI funding signals a strategic pivot in private equity portfolios toward sectors with long-term growth potential. Renewed international interest, particularly from U.S. investors, in European equities suggests a broader confidence restoration in the region’s public and private markets.
The focus on ESG and sustainability aligns with Europe’s leadership in these areas, potentially enhancing value creation and risk management within portfolio companies. Overall, while geopolitical uncertainties and regulatory shifts temper immediate pace and deal volume, private equity in Europe in 2025 is adapting with sector-specific strategies, preparing for a rebound driven by innovation, sustainability, and infrastructure investments, positively impacting market dynamics and capital allocation trends.
- Roark Capital, a PE firm known for its portfolio involving Arby's, Culver's, Subway, and now Dave's Hot Chicken, continues to invest in the restaurant franchise sector.
- RRJ Capital, one of Asia's largest PE firms, has invested $600 million in convertible preference shares into VistaJet, a global business aviation company preparing for a public listing.
- Private equity firms, such as Blackstone, CVC, EQT, and KKR, are collective investing €150 billion for AI opportunities in Europe over the next five years.
- Europe's ESG funds manage over €600 billion, with PE targeting sustainable consumer businesses and industrials to support decarbonization goals.
- Regulatory developments in the EU are expected to expand private equity’s investor base, allowing more individual investors to participate.
