European private equity is at a pivotal moment, with UBS highlighting key questions about the recovery of deal volumes as interest rates decline. While transaction activity is expected to improve, it must double from current rates to reach normal levels, potentially requiring innovative exit strategies and acceptance of lower valuations.The sustainability of double-digit returns may be challenged by rising financing costs and valuation concessions. Fundraising could see structural growth, but hurdles remain, including lower investor appetite and the need for distribution rates to stabilize. Private wealth management presents a significant opportunity for additional fundraising amidst these challenges.