EC Consultation on Private Equity Exit Obstacles

JD Supra Trade Law

Published March 11th, 2026

Detected March 12th, 2026

Summary

The European Commission has launched a consultation seeking feedback on obstacles faced by private equity investors when exiting investments in EU private companies. The consultation aims to improve access to finance for EU start-ups and scale-ups and will inform potential future regulatory or policy actions.

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What changed

The European Commission (EC) has initiated a targeted consultation to gather feedback on challenges encountered by private equity investors when exiting investments in EU-based private companies. This initiative, part of the EC's work on the Savings and Investments Union, seeks to enhance finance accessibility for EU start-ups and scale-ups. The consultation specifically asks for views on barriers to exiting investments, the potential benefits and design of a secondary trading platform for private company shares, and the feasibility of using such a platform for raising new equity capital. The EC notes that difficulties in realizing capital gains or obtaining credible valuations can hinder transactions, potentially reducing market activity and driving companies to seek funding outside the EU.

Regulated entities, particularly those involved in private equity and venture capital within the EU, should review the consultation questions and consider submitting feedback. The deadline for responses is April 27, 2026. The input received will be crucial in determining whether the EC pursues further regulatory or policy interventions to address these exit obstacles and improve the investment landscape for EU companies. Failure to provide input may mean that the EC's future decisions are made without considering specific industry concerns.

What to do next

Review the EC's consultation document on private equity exit obstacles.
Prepare and submit feedback to the European Commission by April 27, 2026.
Assess internal processes and market practices related to private equity exits in the EU.

Source document (simplified)

March 11, 2026

EC Launches Consultation On Private Equity Exits

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The European Commission (EC) has launched a consultation seeking feedback on obstacles faced by private equity investors when exiting investments in EU private companies and on potential ways to address these obstacles. The consultation forms part of the EC's work under the Savings and Investments Union and aims to improve access to finance for EU start‑ups and scale‑ups. The EC notes that persistent challenges, such as not being able to wait for an initial public offering (IPO) to realise capital gains or the lack of a credible valuation of private assets may hinder a transaction. These difficulties reduce market activity, limiting the availability of growth capital and possibly prompting companies to move outside the EU in search of funding. Therefore, the EC is seeking views on the: (i) possible barriers or issues for exiting private equity investments in the EU; (ii) the merits and possible design features of a platform for secondary trading of private company shares; and (iii) the potential of an extended use of such a platform for raising new equity capital. The deadline for responses is 27 April, and the feedback will inform the EC's decision on whether further regulatory or policy action is warranted in this area.

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