The number of Europe-focused private equity and venture capital funds has fallen for the third consecutive year. In 2024, there were only 386 active and closed funds, a significant decline from 456 funds in 2023. This information comes from data compiled by S&P Global Market Intelligence. The trend reflects heightened liquidity issues that these Europe-focused funds are currently facing. Investors may need to rethink strategies as these funds struggle to maintain liquidity amid a challenging economic environment. This persistent slowdown poses a concern for the overall investment landscape in Europe. Fund managers may need to innovate and adapt to counter these liquidity challenges and return to stability.