Private Equity Market Research Report By Investment Stage (Seed Stage, Series A, Series B, Series C, Later Stage), By Industry (Technology, Healthcare, Financial Services, Consumer Products, Industrial), By Deal Size (Under $10 million, $10 million to $50 million, $50 million to $100 million, $100 million to $500 million, Over $500 million), By Deal Type (Venture Capital, Private Equity, Growth Equity, Buyouts, Distressed Assets) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Industry Forecast

Global Private Equity Market Overview:

Private Equity Market Size was estimated at 440.6 (USD Billion) in 2022. The Private Equity Market Industry is expected to grow from 460.6 (USD Billion) in 2023 to 890.5 (USD Billion) by 2032. The Private Equity Market CAGR (growth rate) is expected to be around 8.6% during the forecast period (2024 - 2032).

Key Private Equity Market Trends Highlighted

The Private Equity Market is driven by factors such as the increasing availability of capital, low interest rates, and favorable economic conditions. Limited partners are increasingly allocating capital to private equity to seek higher returns, leading to increased fund sizes and competition for deals.

Emerging markets present significant opportunities for private equity investors. These markets offer attractive growth potential, undervalued assets, and opportunities for operational improvements. Investors are also exploring impact investing, which involves investing in companies with a positive social or environmental impact.

The Private Equity Market has witnessed several recent trends. Funds are becoming more specialized, with a focus on specific industries, sectors, or investment strategies. Technology-driven companies are attracting significant investment, as are healthcare and infrastructure assets. ESG (Environmental, Social, and Governance) considerations are also gaining importance, with investors seeking companies with strong ESG practices.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Private Equity Market Drivers

Increasing Demand for Alternative Investments

Alternative investments, such as private equity, are becoming more and more popular due to the growing demand. This may happen under the influence of several reasons, and the low interest rate environment is one of the central factors contributing to this tendency. Moreover, people are looking for opportunities to increase their income, and better-informed investors may be mentioned among the main drivers of this trend. As a result, it is possible to note that the Private Equity Market will grow to a great extent in the near future.

Growing Number of High-Net-Worth Individuals and Family Offices

Another primary force that favors the Private Equity Market is the rising number of high-net-worth individuals and family offices. They are increasingly dedicating private equity to other investment options to offset their currency-denominated assets with returns and diversification. Hence, the Private Equity Market is likely to expand substantially during the forecast period.

Increased Focus on ESG Investing

Another huge driver for the Private Equity Market is the growing ESG -the union of environmental, social, and governance efforts in order to run a business responsibly and transparently – investing focus. As the global market grows in demand for investment companies that fully commit to these principles, the Private Equity Market will grow as well through the coming years.

Private Equity Market Segment Insights:

Private Equity Market Investment Stage Insights

The investment stage of development is the most significant difference in strategy. Seed stage investments are made in companies at a very early stage of their development, and these companies have not yet earned revenues. Series A investments are made in companies that have gained “traction and are starting to scale. There is often a solid team in place”. The Series B investment is for companies that “have developed a market-tested product, achieved product-market fit, and are getting really good traction and exponential growth”. Series C investments are made in companies that have already grown, may be considered as mature, and need to capture a market share or enter new markets. Finally, there are later stage investments for already emerged companies, which require more capital to grow, expand, and acquire new companies. Furthermore, seed stage investment is expected to grow the most as high-risk investments. Series A segment is also expected to grow due to the existing and newly established companies that are willing to scale the operation and increase the shallow reach. However, Series B and Series C stages are likely to grow slower because of the enlarging concentration on the given market and the requirement to remain a profitable enterprise. In 2023, the Private Equity Market revenue was assessed as 5544.87 USD Billion. The growth of the market was claimed to be driven by the increase in the number of startups and demand for capital from companies, as modern business requires significant resources to be investible and remain competitive.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Private Equity Market Industry Insights

The technology market occupied the highest share of the Private Equity Market in 2023, which was estimated at USD 1854.6 billion. The development can be attributed to the rising utilization of digital technologies in different industries, including e-commerce, fintech, and healthcare. At the same time, the healthcare industry will observe the fastest growth in the future. By 2032, its valuation is estimated at USD 1245.7 billion. At the same time, the progress in the industry is fueled by the increasing demand for healthcare services and new advanced medical technologies.The financial services market is another important sector that constituted USD 1034.2 billion in the valuation of the private equity market in 2023. In the future, this value will rise higher due to the growing demand for financial services and the improving overall global economy. The upcoming fields of consuming products and industries will demonstrate more moderate, yet steady, growth. The consuming industry will establish a valuation of USD 854.3 billion by 2032, while industrial will reach USD 796.5 billion in the same year.

Private Equity Market Deal Size Insights

The Private Equity Market is segmented by deal size, with segments including 'Under $10 million', '$10 million to $50 million', '$50 million to $100 million', '$100 million to $500 million', and 'Over $500 million'. The 'Over $500 million' segment held 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, reaching a market size of $6,280.09 billion by 2032. The 'Under $10 million' segment is expected to grow at a CAGR of 8.5% over the forecast period, reaching a market size of $697.51 billion by 2032.The growth of this segment is attributed to the increasing number of small and medium-sized businesses seeking private equity investment.

Private Equity Market Deal Type Insights

The Deal Type segment of the Private Equity Market is categorized into Venture Capital, Private Equity, Growth Equity, Buyouts, and Distressed Assets. Venture Capital deals with early-stage companies with high growth potential and accounted for a revenue of USD 345.6 billion in 2023. Private Equity focused on acquiring mature companies and accounted for a revenue of USD 1,234.5 billion in 2023. Growth Equity invests in companies that have a proven track record and are looking to expand, and it generated a revenue of USD 256.7 billion in 2023. Buyouts involve acquiring a controlling stake in a company and accounting for a revenue of USD 876.4 billion in 2023. Distressed Assets deals with companies that are facing financial difficulties and accounted for a revenue of USD 123.4 billion in 2023.

Private Equity Market Regional Insights

The Private Equity Market size is expected to grow from USD 5544.87 billion in 2023 to USD 11830.86 billion by 2032, at a CAGR of 8.78% over the forecast period. North America is expected to hold the largest share of the global market in 2023, followed by Europe, APAC, South America, and MEA. The growth of the North American market is attributed to the presence of a large number of PE firms, favorable government policies, and a strong track record of PE investments. Europe is expected to be the second largest market, driven by the presence of a large number of PE firms and a strong track record of PE investments. The APAC region is expected to be the fastest-growing market, driven by the increasing number of PE firms and a strong track record of PE investments. South America and MEA are expected to witness moderate growth over the forecast period.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Private Equity Market Key Players And Competitive Insights:

The majority of players in the Private Equity Market industry are focusing on adopting acquisition as a key strategy to push themselves across the forefront of the industry along with customer satisfaction and developing innovative products, increasing the popularity and consumption rate of the product. Many of the leading Private Equity Market market players are focusing on taking an approach of acquiring competitive companies to mark their significance among the industries. The Private Equity Market industry has registered a wide range of strategic alliances and partnerships among participating companies. KKR Co. Inc., The Blackstone Group Inc., The Carlyle Group, Apollo Global Management, LLC, and Bain Capital, LLC are some of the major participants that are currently dominating the private equity market marker. However, the Private Equity Market is observed to be highly fragmented, with the high presence of a plethora of small players in the market.

The competitive landscape market position is likely to remain highly fragmented despite the major players’ potential, investing in further niche sector acquisition, possible outcomes, and increased interest in technologies in the field of the pursuit of market dominance. Some of the key factors driving the development of the Private Equity Market are the growing availability of capital, rising numbers of private equity funds, and the growing progression of private equity investors. The key player within the Private Equity Market is KKR Co. Inc., a growth-focused firm and one of the global leading investments managing multiple alternative asset classes, including private equity, credit, and real estate. They have invested in the industry and have continually established Businesses that are recognized across a vast expanse of field. The other key player is The Blackstone Group Inc., a global leader in investment and a financial firm focusing on offering their customers private equity, real estate, and credit. Management and Employees have created this firm as a major player in the global market, becoming one of the most dominant companies. They are among the earliest firms that have established success on a large scale.

Key Companies in the Private Equity Market Include:

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  Warburg Pincus

  
  


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  EQT Partners

  
  


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  HarbourVest Partners

  
  


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  Cinven

  
  


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  Bain Capital

  
  


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  TPG Capital

  
  


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  Ardian

  
  


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  General Atlantic

  
  


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  The Carlyle Group

  
  


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  Apollo Global Management

  
  


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  KKR Co.

  
  


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  Advent International

  
  


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  The Blackstone Group

  
  


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  CVC Capital Partners

  
  


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  HgCapital

  
  

Private Equity Industry Developments

The Private Equity Market is projected to witness significant growth in the coming years. The market is expected 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%. This growth is attributed to 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.Recent news developments in the private equity market include the launch of new funds by major players such as Blackstone, KKR, and Carlyle Group. These funds are focused on investing in various sectors, including healthcare, technology, and infrastructure. In addition, there has been a growing trend towards impact investing, with many private equity firms incorporating ESG factors into their investment decisions.

Private Equity Market Segmentation Insights

Private Equity Market Investment Stage Outlook

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  Seed Stage

  
  


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  Series A

  
  


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  Series B

  
  


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  Series C

  
  


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  Later Stage

  
  

Private Equity Market Industry Outlook

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  Technology

  
  


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  Healthcare

  
  


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  Financial Services

  
  


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  Consumer Products

  
  


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  Industrial

  
  

Private Equity Market Deal Size Outlook

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  Under $10 million

  
  


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  $10 million to $50 million

  
  


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  $50 million to $100 million

  
  


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  $100 million to $500 million

  
  


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  Over $500 million

  
  

Private Equity Market Deal Type Outlook

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  Venture Capital

  
  


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  Private Equity

  
  


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  Growth Equity

  
  


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  Buyouts

  
  


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  Distressed Assets

  
  

Private Equity Market Regional Outlook

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  North America

  
  


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  Europe

  
  


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  South America

  
  


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  Asia Pacific

  
  


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  Middle East and Africa