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Peter O'Connor aka anemoneprojectors now reduced uncertainty in the construction sector. He said
there is a turning point in the EU housing market amid improve
affordability, rising real wages and declining interest rates.

EU timber and forestry garnering growing interest from
investors
According to globalaginvesting.com, private equity is undergoing
a strategic reset. Up against a perfect storm of inflationary
pressure, shifting investor preferences and a tightening regulatory
net, the industry has had to become nimbler, leaning into
sectors that offer both solid financial footing and tangible
environmental value.
One of the most notable shifts in today’s private capital

Holger Lösch, executive board member of the Federation markets is the growing momentum behind timber and forestry
of German Industries, said European regulations were trying funds—a once-niche strategy that is now gaining notoriety as
to do the impossible and performing ‘gymnastics’ in their a key component of climate-focused portfolios.
policy approach. A new EY report, entitled “The Rise of Timber and Forestry
This came, he said, from a general distrust towards Funds in Recovering PE and VC markets,” dives into the rising
businesspeople from Europea policymakers and a risk averse influence of timber and climate funds around the world—
approach. particularly in the EU.

Mr Lösch said policymakers were understanding that the After several years of market upheaval, including trillions
industry had tough challenges, but they were also intent on in sidelined capital that is finally shrinking, the private equity
ambitious climate targets. and venture capital space has begun to find its footing.
“There is an internal fight about what measures we need Global PE fundraising fell to $680 billion in 2024, marking
to take to gain business confidence again, while still helping the third consecutive annual decline and the lowest tally since
climate targets,” he said. 2015, according to Preqin and Pitchbook data.
“We need to get away from this attitude of regulating every Venture capital also cooled, with 1,783 funds raised—a 40
detail because it is ruining our innovation.” percent drop from the year-ago period. Yet the performance
New EPF managing director Matti Rantanen reported a isn’t totally bleak. Investors directed $619 billion across 462

growth in building permits towards the end of 2024 (+14%) mega-deals, up 35 percent year-over-year, signalling a shift
and the start of 2025 (+5%), following a declining trend in toward fewer but larger bets.
recent years. But he said economic sentiment remains in Geographically, North America, Europe and Asia capture
“negative territory” for the industry. the biggest wave of private capital deal flow, though each
The furniture sector experienced a minor increase in region is charting its own course. Asia is seeing a surge in
production in Q1, 2025 year-on-year, after a 20 percent decline VC funding, fuelled by tech innovation.
from mid-2022 to the end of 2024. Globally, artificial intelligence is crowding deal pipelines,

Mr Rantanen summarised by saying private consumption with AI investment up 35 percent from 2023. In Europe,
is the main current growth driver in the EU27, while there is sustainability continues to influence asset allocation, and