Buyout fundraising in Europe is set to fall by between 30% and 40% over the next few years, threatening the viability of some of the continent’s private equity groups, according to one of the industry’s most senior figures.

Walid Sarkis, a managing director at US group Bain Capital, said: "There will be a decline in fundraising over the next two to three years and a shake-out of general partners. By order of magnitude, a 30% to 40% reduction in fundraising can definitely be envisioned over the next five to seven years."