Four mid-market private equity firms from across Europe have teamed up to help improve each other's international credentials, in a move that highlights the growing challenges facing single-country investors in the region.

The Private Equity Network comprises Graphite Capital from the UK, France's Activa Capital, Equity Capital Management of Germany and Spanish firm MCH Private Equity. The firms will aim to benefit from each others' knowledge of their local areas when building up and expanding portfolio companies. They will also look into co-investment opportunities together and "share best practice".