No tech tailwind in Europe

European Capital Partners was on roadshow in Munich yesterday, meeting institutional investors to present our European Value Strategy. One discussion point stood out: how our investment philosophy has evolved over the past two decades to navigate Europe’s structural and economic headwinds.

Several participants voiced concerns about Europe’s competitiveness — not only France’s current malaise but the broader transatlantic gap in innovation and capital intensity. While we continue to find high-quality European businesses trading at attractive valuations, it is striking that no European name ranks among the world’s top 20 most valuable companies.

The chart below illustrates why this burdens overall economic growth: in the U.S., tech capex alone has been a major driver of GDP growth, a structural tailwind largely absent in Europe. Bridging that gap ( if it is possible ) will define Europe’s next growth chapter.