Global Private Equity Market Size, Share & Trends Analysis Report, Forecast Period, 2024-2030

The Private Equity market is experiencing robust expansion, with market size projected to increase from (460.0 Billion) 2023 to (86.15 Billion) 2030, demonstrating a consistent year-over-year growth rate of 10.5%. Private Equity Market Size, Share, Competitive Landscape and Trend Analysis Report, , by Applications (Leveraged buyouts, Venture capital, Equity investment, Entrepreneurship) , by Fund Type (Buyout, Venture Capital, Real Estate, Infrastructure, Others), by Sector (Technology, Financial Services, Real Estate and Services, Healthcare, Energy and Power, Industrial, Others) And regions (North America (United States, Canada, Mexico), South America (Brazil, Argentina, Chile, Rest of South America), Europe (Germany, France, Italy, United Kingdom, Benelux, Nordics, Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia, Southeast Asia, Rest of Asia-Pacific), MEA (Middle East, Africa)) : Industry Forecast and Opportunity Analysis for 2023 - 2030

By means of private equity, the investment comes in the form of a company not listed on the stock exchanges. Such investments are made by specialised investment firms or funds that hoard capital from institutional investors such as pension schemes, endowments, or wealthy individuals. PE firms find companies with significant potential for further growth and are, however, currently undervalued or underperforming. Direct involvement by the PE firm takes place once they acquire a stake in a company. The firm might restructure, grow, or inject new capital into the company to enhance its profitability and values. This process within the company is meant to make the company more valuable before finally exiting the investments through a sale or an initial public offering (IPO).

Private Equity Report Highlights

Report Metrics	Details
Forecast period	2019-2030
Base Year Of Estimation	2023
Growth Rate	CAGR of 10.5%
Forecast Value (2030)	USD 86.15 Billion
Key Market Players	Allens Apollo Asset Management Inc. Bain and Co. Inc. Bank of America Corp. BDO Australia Blackstone Inc. AHAM Asset Management Berhad Ernst and Young Global Ltd. HSBC Holdings Plc JPMorgan Chase and Co. Morgan Stanley MorganFranklin Consulting Navy Federal Credit Union Onex Corp. Apollo Global Management, Inc. Blackstone Inc.
By Region	North America (United States, Canada, Mexico) South America (Brazil, Argentina, Chile, Rest of South America) Europe (Germany, France, Italy, United Kingdom, Benelux, Nordics, Rest of Europe) Asia Pacific (China, Japan, India, South Korea, Australia, Southeast Asia, Rest of Asia-Pacific) MEA (Middle East, Africa)

Private Equity Market Trends

In recent years, the private equity market has been deemed the host of many trends attributed to the augmenting availability of capital, along with strong demand by investors and a broadening global opportunity base. A major trend is that investments are seeping into various sectors, where private equity targets the fast-growing areas such as technology, healthcare, and renewable energy affinities. This further strengthens their reasons for investment as they provide rewarding returns being anticipated due to innovation, digital transformation, and sustainability demands. Another major trend is the ESG consideration, where companies are sought after if they are going to be both a preference of profit for the investors and, at the same time, match ethical and environmentally sustainable practices. Automation, artificial intelligence, and big data are revolutionising the ways firms do business. Investing will no longer be stereotyped but will happen using these latest innovative technologies. Besides, secondary markets and opportunities for liquidity are redefining the way in which both investors and firms view exits, hence making private equity even more accessible and flexible for both parties.

Private Equity Market Leading Players

The key players profiled in the report are Allens, Apollo Asset Management Inc., Bain and Co. Inc., Bank of America Corp., BDO Australia, Blackstone Inc., AHAM Asset Management Berhad, Ernst and Young Global Ltd., HSBC Holdings Plc, JPMorgan Chase and Co., Morgan Stanley, MorganFranklin Consulting, Navy Federal Credit Union, Onex Corp., Apollo Global Management, Inc., Blackstone Inc.

Growth Accelerators

The increasing need for alternative investment opportunities has fuelled the rise of private equity (PE) markets, fuelled by an increased need for capital by privately held companies. These are the basic drivers of demand for private equity, for example, investors, institutions, and family offices, who, seeking to enhance their returns, allocate a part of their portfolios to PE, as ordinary investments like stocks and bonds yield less. Increased demand for the dynamically sending areas of investment—the buyout, growth capital, and venture—for additional private equity markets has contributed to the attractiveness of all these features. Another major driver is the potential that private equity companies exploit to create value from their portfolio companies through active management, restructurings, and growth strategies. Pulling cost efficiencies and operational improvements allows private equity firms to optimise the performance of portfolio companies and create significantly higher returns on their portfolios. In addition, the proliferation of attractive debt funding has allowed private equity firms to achieve larger deals.

Private Equity Market Segmentation analysis

The Global Private Equity is segmented by Application, and Region.
. The Application segment categorizes the market based on its usage such as Leveraged buyouts, Venture capital, Equity investment, Entrepreneurship. Geographically, the market is assessed across key Regions like North America (United States, Canada, Mexico), South America (Brazil, Argentina, Chile, Rest of South America), Europe (Germany, France, Italy, United Kingdom, Benelux, Nordics, Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia, Southeast Asia, Rest of Asia-Pacific), MEA (Middle East, Africa) and others, each presenting distinct growth opportunities and challenges influenced by the regions.

Competitive Landscape

M&A activities have further witnessed a gradual gain in investor confidence, which resulted in an upward shift toward larger transactions. Per KPMG survey, it proclaims that about 80% of the respondent’s target merging or acquisition deals worth over $1 billion, thus flagging a positive outlook toward the rest of 2024. Acquisitions in the technology-related segment still lead the charge as firms try to align the long-term growth areas in data management, digital transformation, and the like. This is thought to be a strategic shift towards quality investments to redefine the future of private equity deal-making as firms navigate a market-recovering environment.

Challenges In Private Equity Market

Currently, the private equity market faces many challenges that can bear an impact on its growth or performance in the future. Lack of liquidity is one of the prime issues, as investments in private equity securities are quite illiquid and may take quite a while before returns are realized. This can really keep off potential investors who prefer other liquid assets or do not wish to tie up capital for a substantial period. Besides, such a market is always integrated into the economic cycles, and during downturns, it can lead to the loss of value, especially when portfolio companies struggle with recessions or market turmoil. The other risk is regulatory and compliance risk because private equity firms operate in an area of very complex and changing regulations. Changes in tax laws, financial reporting standards, or industry-specific regulation could make investments less attractive to investors. It's increasingly becoming difficult to raise funds for private equity, with institutional investors being extremely cautious and selective in deciding where to pour their funds, especially during times of uncertain global economic activity.

Risks & Prospects in Private Equity Market

The PE market offers opportunity galore because of the demand that is created by a shift from conventional investment options and returns to alternative options for income generation. Because of low yields with traditional investment avenues, institutional investors, family offices, and high-net-worth individuals find private equity to be an avenue to diversify their portfolios. The opportunities in this market extend across several sectors—technology, healthcare, energy, consumer goods, and a few more—where PE firms would use their expertise to propel growth, improve operational efficiencies, and make it all work towards higher profits. Another major opportunity is found in the phenomenon of ESG investing—literally the leap in the direction of environmental, social, and governance principles. With more investors willing to make their portfolios sustainable and ethical, the doors have been flung open at private equity for targeting investing in social responsibility or, for example, green energy, clean technologies, and sustainable infrastructure projects. Furthermore, a caveat to troubled asset industries arising from globalisation dislocations or slowed economies stands as an opportunity for PE to pick up low-priced companies for refurbishment and improvements to capitalise on growth.

Key Target Audience

This private equity market audience reaches primarily institutional investors: pension funds, endowments, family offices, sovereign wealth funds, and insurance companies. These organisations generally have large pools of capital to invest and are typically looking for avenues for high returns, usually offered by private equity. The risks associated with these investments are higher than those associated with stocks and bonds, and institutional investors are often attracted to private equity for that reason.,, Private equity companies and fund managers that collect money from the institutional investors and invest in different businesses, usually via buyout, venture capital, or growth capital funding, are also very important areas in private equity. These firms aim at improving the value of businesses where they are invested to derive significant returns upon exit by, for instance, operational improvements, strategic acquisitions, or restructuring. This audience also includes entrepreneurs or business owners seeking capital to expand their operation or facilitate a sale or exit strategy.

Merger and acquisition

Private equity (PE) recorded an accomplishment toward the big M&A comeback of activity in 2024. With most macroeconomic challenges gone, mergers and acquisitions had previously become quiet at this time. In just one quarter alone, PE deal volumes reached 337 transactions valued at $7.6 billion, showing tremendous uptick activity and value over other quarters. Some remarkable transactions happen to include Blackstone's acquisition of Airtrunk, valued at $16 billion. This sort of investment would refer to an ongoing trend emphasising technology and data infrastructure catering to the higher demands for cloud computing and artificial intelligence. A general strategic portfolio that has been previously built up to capitalise on sectors with robust growth potential under changing sets of economic conditions is now being seen again. >

Analyst Comment

"In recent years, the private equity (PE) market has witnessed a phenomenal increase with the introduction of more important institutional investor participation coupled with an economic environment that favoured investment in this asset class. This made PE companies actively invest in various other industries for the purpose of improving the efficiency of operations of most of these firms financially and valuing them higher. They employ strategies such as leveraged buyouts, growth capital, and venture capital to fund their investment ambitions. The PE market has many good investment opportunities. Still, it is important to know that it is a complex and high-risk asset class wherein investors are advised to think through their risk appetites and investment horizons before committing funds to PE investment."