Morning all, Craig McGlashan on Europe Wire duty from the London newsroom. TowerBrook managing director Joseph Knoll shares insights on the current climate for U.S. private equity in Europe, noting lower multiples but a more complex regulatory environment. The firm remains extremely bullish on opportunities in H2, especially in fragmented mid‑market, founder‑ and family‑owned businesses where relationships matter.

Recent deals include the £5.75 billion acquisition of Ireland’s DCC Energy by Energy Capital Partners and KKR, a 24% premium over the closing price and a 33 percent premium to the three‑month VWAP. Other transactions involve Cinven and La Caisse buying Optio Group, and Mutares acquiring Stellantis’ stake in Free2move’s car‑sharing platform.

Knoll emphasizes modern value investing, disciplined pricing, thesis‑driven sourcing and operational transformation, with AI used to strengthen economics rather than commoditize. He predicts a selective exit market, favoring strategic buyers, and stresses that operational execution, not market beta, will drive returns in the coming years.