Understanding Private Equity Market Trends Today

The private equity market has seen significant growth in recent years, with assets under management reaching a record high of $7.5 trillion in 2022. This is largely due to the increasing demand for private equity investments from institutional investors and high net worth individuals.

The COVID-19 pandemic has accelerated the growth of the private equity market, with many investors seeking alternative assets to traditional stocks and bonds. Private equity firms have been able to capitalize on this trend by providing investors with access to a wide range of investment opportunities.

One key trend in the private equity market today is the rise of mid-market deals. According to a report, mid-market deals accounted for 44% of all private equity transactions in 2022, up from 36% in 2020. This shift towards mid-market deals is driven by the increasing availability of capital and the growing demand for smaller, more specialized investments.

The private equity market is also becoming increasingly global, with many firms expanding their operations into new regions and countries. This is driven by the growing demand for private equity investments from international investors and the increasing availability of investment opportunities worldwide.

The private equity market size is a fascinating topic, and one key aspect is the breakdown by asset subclass. Buyout funds make up around half of the market growth, with growth and venture capital making up around a quarter each.

This is interesting because it shows that buyout funds are a significant force in the market, driving growth and expansion.

The number of funds is another important factor, and here's the surprising part: there are far more venture capital funds than any other strategy, followed by growth, then buyout. This may seem counterintuitive, but it's because venture capital funds invest smaller amounts at an earlier stage of a company’s life than buyout funds.

Despite being outnumbered, buyout funds dominate the market in total size, which is a testament to their ability to make larger investments and drive significant growth.

The private equity market has experienced significant growth in recent years, with the global market size expected to reach $11830.86 billion by 2032, growing at a CAGR of 8.78%. This growth is driven by factors such as the increasing availability of capital, low interest rates, and favorable economic conditions.

Private equity-backed companies have surged in number, surpassing public companies in the US market. In fact, the count of private equity-backed companies has increased by 400% since 2000, reaching over 11,500 companies. This is in contrast to the decline in public companies, which has shrunk by 35% since 2000.

The private equity market is driven by the increasing demand for alternative investments, such as private equity, due to the low interest rate environment and the desire for higher returns. In fact, the private equity market has grown to a great extent in recent years, with the global market size expected to reach $11830.86 billion by 2032.

The private equity market is segmented by deal size, with the 'Over $500 million' segment holding the largest market share in 2023, accounting for 42.5% of the private equity market revenue. This segment is expected to continue to grow at a CAGR of 8.8% over the forecast period.

The private equity market has witnessed several recent trends, including the increasing focus on ESG (Environmental, Social, and Governance) considerations, with investors seeking companies with strong ESG practices. In fact, the growing ESG investing focus is a huge driver for the private equity market, with the global market size expected to grow as well through the coming years.

Here is a breakdown of the deal type segment of the private equity market:

The technology market has occupied the highest share of the private equity market in 2023, with an estimated value of $1854.6 billion. The healthcare industry is expected to observe the fastest growth in the future, with its valuation estimated at $1245.7 billion by 2032.

The private equity market is dominated by a few major players who are constantly looking for ways to stay ahead of the competition. These players are focusing on adoption of acquisition as a key strategy to increase their market share and customer satisfaction.

One of the key players in the market is KKR Co. Inc., a growth-focused firm that has invested in various industries and established successful businesses across a wide range of fields. They are a global leader in investments, managing multiple alternative asset classes, including private equity, credit, and real estate.

The Blackstone Group Inc. is another major player in the market, offering private equity, real estate, and credit services to its customers. They have established themselves as a dominant company in the global market, becoming one of the first firms to achieve success on a large scale.

Other key players in the private equity market include Warburg Pincus, EQT Partners, HarbourVest Partners, and many others. These companies are constantly looking for ways to innovate and improve their services to stay ahead of the competition.

Here are some of the key players in the private equity market:

The private equity market is poised for significant growth, with a projected valuation of USD 5,544.87 billion by 2023 and USD 11,830.86 billion by 2032, growing at a CAGR of 8.78%.

The market is expected to witness significant growth in the coming years, driven by the increasing number of high-net-worth individuals and family offices seeking alternative investments, as well as the growing demand for private equity from institutional investors.

The Private Equity Market is projected to surpass USD 5,544.87 billion by 2023 and reach USD 11,830.86 billion by 2032, growing at a CAGR of 8.78%.

Recent news developments in the private equity market include the launch of new funds by major players such as Blackstone, KKR, and Carlyle Group, which are focused on investing in various sectors.

Here's a breakdown of the Private Equity Market investment stages:

The Private Equity Market is not limited to a single industry, but rather encompasses various sectors, including technology, healthcare, and financial services.

The private equity market has evolved significantly, creating greater resources for mid-sized U.S. companies compared to international peers.

With broader options for ownership and financing, company owners have alternatives for exits or funding growth. This market evolution is particularly beneficial for mid-sized companies, which can now strategically access capital in various ways to suit their needs.

Since 2000, the private equity-backed company count has increased by 400%+, from about 2,000 U.S. companies to more than 11,500.

The growth of the private equity market has led to a decline in the count of publicly-listed U.S. businesses on the NYSE or NASDAQ exchanges, shrinking by 35% from roughly 7,000 to 4,500.

However, it's essential to note that the market capitalization for public U.S. companies listed on the NASDAQ and NYSE exchanges was about $54 trillion as of March 2024, compared to $3.5 trillion held in domestic private equity funds at the end of 2023.

This size gap illustrates that while private equity holds far more companies, those businesses are smaller on average than publicly-listed ones.

The declining count of public companies is related to the growth of the PE market, but also to a mix of other factors, including increased regulatory costs for public company compliance and disclosures.

Mid-sized companies can benefit from the growth of the private equity market, with access to a broader range of capital sources and exit options.