What Has Been The Evolution of the Private Equity Market in Recent Years?
The private equity market has seen considerable growth due to a variety of factors.
• The private equity market has witnessed rapid growth in recent years. It will rise from $480.8 billion in 2024 to $531.09 billion in 2025, at a compound annual growth rate (CAGR) of 10.5%.
The growth is driven by globalization, rising consumer spending, demand for modern infrastructure, financial costs, and the need for diversification.
What Is the Forecasted Market Size and Growth Rate for The Private Equity Market Size In The Coming Years?
The private equity market is expected to maintain its strong growth trajectory in upcoming years.
• The private equity market is forecasted to grow to $781.36 billion by 2029 at a CAGR of 10.1%.
The growth is driven by increased investment in digital health startups, rising interest rates, competition from strategic investors, and the growth of entrepreneurial activity. Key trends include investments in technology, AI and ML integration, and robotic process automation.
What Factors Are Driving Growth In The Private Equity Market?
The rise in the number of startups is anticipated to fuel the expansion of the private equity market in the future. Startups are early-stage companies or organizations usually aimed at introducing a unique product, service, or technology to the market. The swell in startup numbers can be attributed to enhanced access to funds and a rising preference for innovative, flexible work surroundings. Private equity firms begin to multiply, attain monetary stability, and enhance their possibilities for long-term prosperity. For example, as reported by Startups.co.uk, a UK-based business advice website, in 2023, 39,966 new businesses sprouted in the UK, marking a 6.5% surge compared to 2022. Consequently, the escalating number of startups is steering the expansion of the private equity market.
What Are The Main Segments Of The Global Private Equity Market?
The private equity market covered in this report is segmented –
1) By Fund Type: Buyout, Venture Capitals (VCs), Real Estate, Infrastructure, Other Fund Types
2) By Investor Type: Institutional Investors, High-Net-Worth Individuals (HNWIs), Family Offices, Fund Of Funds
3) By Industry: Healthcare, Technology, Consumer Goods, Energy And Infrastructure, Financial Services, Other Industries
Subsegments:
1) By Buyout: Leveraged Buyouts (LBOs), Management Buyouts (MBOs), Public-to-Private Buyouts
2) By Venture Capitals (VCs): Seed Stage Funds, Early Stage Funds, Growth Stage Funds
3) By Real Estate: Residential Real Estate Funds, Commercial Real Estate Funds, Industrial Real Estate Funds
4) By Infrastructure: Renewable Energy Funds, Transport Infrastructure Funds, Telecommunications Infrastructure Funds
5) By Other Fund Types: Distressed Asset Funds, Mezzanine Funds, Special Situations Funds
Pre-Book The Private Equity Global Market Report 2025 Report For Swift Delivery And Comprehensive Insights:
What New Trends Are Influencing The Private Equity Market?
Leading firms in the private equity market are concentrating on creating unique products such as private equity secondary products. These are designed to offer investors improved liquidity alternatives, diversify their investment porfolios, and take advantage of lucrative opportunities within private equity funds and companies. Private equity secondaries, or the secondary private equity market, involves trading previously acquired investor commitments to private equity funds. Through this secondary market, investors can offload their shares in private equity funds before the fund's maturity date, introducing liquidity into a typically illiquid asset category. For example, in February 2024, the Brazil-based financial services firm, Collar Capital, unveiled the Coller Secondaries Private Equity Opportunities Fund (C-SPEF). This fund is a tender offer fund curated specifically for accredited high-net-worth investors, and is a private equity secondaries-only offering. It creates a novel avenue for individuals to put money into private markets and conveniently access the asset class through a diverse, institutional-grade portfolio. C-SPEF is committed to providing a captivating blend of appealing absolute and risk-adjusted returns, diversification, and superior liquidity relative to ordinary private equity funds. Early investors benefit from no performance fee and a waived management fee for the first year as part of the incentives offered by C-SPEF.
Who Are the Key Players In The Private Equity Market?
Major companies operating in the private equity market are:
• Berkshire Hathaway Inc.
• Brookfield Corporation
• Blackstone Inc.
• Clayton Dubilier& Rice Information(CDR) LLC
• EQT AB
• KKR & Co. Inc.
• The Carlyle Group Inc.
• Hellman & Friedman LLC
• Warburg Pincus LLC
• TPG Capital (TPG) Inc.
• General Atlantic Service Company L.P
• Silver Lake Technology Management L.L.C.
• Vista Equity Partners
• Advent International Corporation
• Permira
• Bain Capital LP
• Francisco Partners Management L.P
• L Catterton
• CVC Capital Partners
• Insight Partners
What Is The Most Dominant Region In The Private Equity Market?
North America was the largest region in the private equity market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the private equity market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
