Thoughts From the Road: Europe | Idea Farm

Thoughts From the Road: Europe

KKR

Henry McVey

Research

13 Pages

November 2025

Henry McVey describes a cautious yet constructive view on Europe, where attractive valuations and underowned markets support risk assets into 2026. He also stresses that slow policy delivery, high energy costs, and uneven reform mean investors must focus on targeted themes and private capital rather than a broad macro upswing.

Date published: November 2025

Key Takeaways

Pragmatic growth view: European growth expectations cool, yet valuations and central bank stance still support constructive risk appetite into coming years.

Policy follow through: Limited progress on reforms, high energy costs, and slow AI investment leave competitiveness gains and productivity improvements unrealized.

Private capital opportunity: Need for funding, active deal pipelines, and stronger periphery performance steer investors toward thematic private and infrastructure exposure.

Global Macroeconomics

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