Private Equity Market Report

Global Private Equity Market Size:

The global private equity market size reached USD 787.0 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 1,670.4 Billion by 2033, exhibiting a growth rate (CAGR) of 8.73% during 2025-2033. The increased investor appetite for alternative investments, low-interest rates encouraging leverage, the pursuit of higher returns amidst market volatility, and a favorable regulatory environment fostering investment opportunities are some of the key factors explained in the market research.

Global Private Equity Market Analysis:

• Market Growth and Size: The private equity market share experienced significant growth, primarily propelled by increased investor appetite for alternative investments, with global assets under management reaching trillions of dollars.
• Major Market Drivers: Key drivers bolstering the market growth include low-interest rates, volatile public markets, regulatory reforms, and the pursuit of higher returns amidst market uncertainty. These factors are augmenting the demand for private equity investments across various fund types.
• Technological Advancements: The private equity industry overview denotes that ongoing technological advancements are revolutionizing the industry, facilitating improved deal sourcing, due diligence, portfolio management, and value creation through next-generation technologies like data analytics, artificial intelligence (AI), and automation.
• Industry Applications: Private equity investments involve diverse industries, including healthcare, technology, renewable energy, and consumer goods, with firms targeting sectors poised for growth, consolidation, or disruption.
• Key Market Trends: The rise of environmental, social, and governance (ESG) considerations, increasing focus on operational improvements, and growing interest in impact investing and sustainable finance are among the key private equity market trends in 2023.
• Geographical Trends: North America accounted for the largest share in the global private equity market. Regions’ robust economic growth, a mature corporate landscape, and technological innovation are fostering opportunities in sectors like healthcare, technology, and consumer goods, thereby bolstering the private equity market share.
• Competitive Landscape: The market is highly competitive, with established firms like AHAM Asset Management Berhad, Allens, Apollo Global Management, Inc., Bain and Co. Inc., Bank of America Corp., BDO Australia, Blackstone Inc., CVC Capital Partners, Ernst and Young Global Ltd., HSBC Holdings Plc, Morgan Stanley, The Carlyle Group, and Warburg Pincus LLC, among others.
• Challenges and Opportunities: The escalating competition for attractive deals, regulatory complexities, and macroeconomic uncertainties are the major challenges faced by the global private equity market. However, value creation through operational improvements, strategic partnerships, and the intervention of government regulatory authorities in various international equity markets is anticipated to offer lucrative growth opportunities to the market.
   

Global Private Equity Market Trends:

Increased Investor Appetite For Alternative Investments

The increasing shift in investor preference towards alternative investments, like private equity, is one of the primary private equity market trends. Growing interest towards traditional investment options like stocks and bonds on account of their volatility and lower returns due to factors, such as geopolitical uncertainties, fluctuating interest rates, and market saturation is also contributing to the growth of the market. As a result, institutional investors, pension funds, endowments, and high-net-worth individuals are allocating capital to alternative assets, seeking diversification and higher yields to meet their investment objectives. The U.S. private equity deals were valued at US$ 611 Billion as of September 30, 2023. In line with this, various key companies are also offering their equity to private players and high-net-worth individuals in order to raise investments and reduce burnout. For instance, Toshiba Corp.’s board has accepted a buyout offer from a group led by private equity firm Japan Industrial Partners, valuing the company at 2 Trillion Yen (US$ 15.2 Billion). Such investments are anticipated to propel the private equity industry outlook in the coming years.

Pursuit Of Higher Returns Amidst Market Volatility

The unpredictable economic conditions and ongoing market volatility are driving investors to seek alternative avenues for generating superior risk-adjusted returns. Investors are focusing on long-term value creation, streamlining operations, and active management, which can be achieved through investments in private equity since they are more reliable and offer higher yields and capital appreciation. As a result, the U.S. Private Equity Index provided by Cambridge Associates shows that private equity produced average annual returns of 10.48% over the 20-year period ending on June 30, 2020. Additionally, during that same time frame, the Russell 2000 Index, a performance tracking metric for small companies, averaged 6.69% per year, while the S&P 500 returned 5.91%. Moreover, the illiquid nature of private equity investments allows fund managers to pursue contrarian investment opportunities and capitalize on market inefficiencies. This means mitigating short-term market volatility and aligning investor interests with long-term value creation.

Favorable Regulatory Environment Fostering Investment Opportunities

Regulatory reforms and evolving market dynamics are contributing to a favorable environment for private equity investments across the globe. Regulatory changes, such as the relaxation of restrictions on fundraising, the easing of investment barriers, and favorable tax policies, are facilitating the growth of the private equity industry and expanding investment opportunities across geographies and sectors. Moreover, regulatory authorities in various nations are implementing policies and regulations to regulate and monitor the private equity market. For instance, in August 2023, the U.S. Securities and Exchange Commission (SEC) approved the introduction of the Private Fund Adviser Rules. Private equity market analysis states that these rules will require private equity firms and hedge funds to detail all fees and expenses on a quarterly basis. They also include requirements for detailed performance reports to be published every three months. This will protect investors from miscommunication scenarios and any fraudulent activity. Besides this, advancements in technology and communication have enabled private equity firms to access a broader pool of investment opportunities, conduct due diligence more efficiently, and monitor portfolio performance in real-time, thereby contributing to market expansion.

Private Equity Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our private equity market report has categorized the market based on the fund type.

Breakup by Fund Type:

• Buyout
• Venture Capital (VCs)
• Real Estate
• Infrastructure
• Others
   

Buyout accounts for the majority of the market share

The report has provided a detailed breakdown and analysis of the market based on the fund type. This includes buyout, venture capital (VCs), real estate, infrastructure, and others. According to the report, buyout represented the largest segment.

The growing preference for the buyout fund type, since it involves acquiring a well-established company with strong expansion potential, is propelling the growth of this segment. Buyout funds allow investors to take the majority of the share, gain control of businesses, streamline operations, and drive value creation through active management. Private equity market research recently showed that a private equity firm, New Mountain Capital, has offered to purchase R1 for $13.75 per share, or roughly $5.8 billion in cash, according to new financial disclosures. New Mountain Capital is R1’s second-largest investor, owning nearly one-third of the company’s shares. Buyouts like these allow the investor to generate substantial returns by leveraging the target company's assets and cash flows. 

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America leads the market, accounting for the largest private equity market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.

North America’s robust economic conditions, a mature corporate landscape ripe for consolidation, and technological innovation are fostering investment opportunities in sectors like healthcare, technology, and consumer goods. In addition to this, private equity investment in the healthcare sector continues to be a significant area of focus for the U.S. antitrust agencies. For instance, on March 5, 2024, the Federal Trade Commission (FTC) hosted a public workshop to “examine the role of private equity investment in health care markets”. Moreover, the presence of leading private equity firms in the U.S. is also making North America’s the largest shareholder in the private equity market. According to S&P Global Market Intelligence data, California and Massachusetts ranked first and second among American states with the highest private equity and venture capital penetration rates, respectively. California's private sector comprises 263,297 companies, the highest count among states included in the study. Out of that total, 18,382 were shown to have private equity or venture capital backing, reflecting a penetration rate of 6.98%.

Leading Key Players in the Private Equity Industry:

The global private equity market is facing intense competition among a diverse array of players, including well-established firms, emerging managers, sovereign wealth funds, and family offices. Established firms contribute to the majority of industry share, leveraging their experience, deep industry expertise, and global networks to identify, analyze, and capitalize on lucrative investment opportunities. Emerging managers and small equity players are increasingly investing in the in-niche sectors or geographies due to less completion and higher possibilities of gaining lucrative returns. They are offering innovative strategies, personalized client services, and expertise in decision-making. Sovereign wealth funds and pension funds are also seeking to diversify their portfolios and enhance returns due to which they are entering the private equity arena. The private equity market recent developments are also augmenting competition for high-quality assets and exerting downward pressure on investment multiples.

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• AHAM Asset Management Berhad
• Allens
• Apollo Global Management, Inc.
• Bain and Co. Inc.
• Bank of America Corp.
• BDO Australia
• Blackstone Inc.
• CVC Capital Partners
• Ernst and Young Global Ltd.
• HSBC Holdings Plc
• Morgan Stanley
• The Carlyle Group
• Warburg Pincus LLC
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Latest News:

• March 2024: A U.S.-based energy private equity firm, Kimmeridge, has made a US$ 2.1 Billion bid for Houston exploration company SilverBow Resources. The firm is offering to buy US$ 32.4 Million shares at US$ 34 per share, or more than US$ 1.1 Billion total.
• March 2024: The Federal Trade Commission (FTC) hosted a public workshop to examine the role of private equity investment in health care markets.

Private Equity Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the private equity market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global private equity market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the private equity industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.