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Europe to raise at least €481bn for ESG by 2025, PwC projects

Article 8 and 9 funds will make up between 27% and 42% of Europe’s private markets assets by 2025, PwC projects.

Europe’s Article 8 and 9 fund assets are set to grow to between €775.70 billion and €1,210.3 billion in value by 2025, with a minimum of €481.10 billion in newly raised capital, according to a report by PwC.

PwC’s report sets out minimum or ‘base case’ and maximum or ‘best case’ scenarios of the value of privately owned ‘ESG’ assets in Europe – assets that qualify under Articles 8 or 9 of the EU’s SFDR by 2025.

These assets are set to make up between 27.2 percent (base case) and 42.4 percent (best case) of Europe’s total private assets.

Infrastructure will see the largest market share dedicated to Article 8 and 9 fund assets, with a projected 40.6 percent, valued at €251.6 billion, in PwC’s base case scenario.

At least 33.7 percent of real estate, 21.3 percent of private debt and 20.7 percent of private equity assets will be Article 8 or 9 qualifiers.