European private equity funds raised €28bn ($34bn) last year, the third highest figure in more than a decade and fresh evidence that confidence in the industry continues to grow.

Funds invested €23.1bn last year and investment activity improved in the second half of the year after a sluggish start. Buyouts dominated the industry, accounting for 67% of funds invested and secondary buyouts were the largest individual exit method accounting for 21% of the year's total €9.5bn divestments. Secondary buyouts reached significant levels in all major European markets and there was a 55.6% drop in write-offs compared with the previous year.