Private Equity Market

Market Overview:

The global private equity market size reached US$ 655 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 1,179 Billion by 2028, exhibiting a growth rate (CAGR) of 10.1% during 2023-2028. The availability of a massive volume of capital in the market, the increasing need for diversification of that capital, and the emerging trend of start-up culture are key factors driving the market.

Private equity is a form of investment that involves the acquisition and ownership of shares or equity in privately held companies. It is characterized by the use of capital from high-net-worth individuals, institutional investors, or specialized firms to fund the purchase and restructuring of companies. Private equity firms aim to generate substantial returns on their investments over a specific period, typically five to seven years. One of the key features of private equity is the active involvement of investors in the management and strategic decision-making of the acquired company. Private equity firms often bring in their expertise, network, and operational improvements to enhance the value of the business. They may implement changes in corporate governance, streamline operations, and optimize the company's financial structure to drive growth and profitability. Private equity provides access to substantial capital and operational expertise, which can fuel growth and expansion. It also allows companies to access long-term capital that may not be available through traditional financing sources. As a result, it plays a significant role in the global economy, thus driving innovation, job creation, and economic growth.

Private Equity Market Trends:

The global private equity market has experienced significant growth in recent years, driven by a combination of factors that have created favorable conditions for investments and expansion. Primarily, persistently low interest rates have made traditional fixed-income investments less attractive, leading investors to seek higher returns elsewhere. Private equity offers the potential for higher yields, making it an appealing option for institutional investors and high-net-worth individuals. In line with this, private equity has delivered attractive returns over the long term, outperforming many other asset classes. As a result, private equity has become an increasingly popular investment choice as investors seek to diversify their portfolios and achieve higher returns. Furthermore, the amount of capital available for investment in private equity has been steadily increasing. Institutional investors, such as pension funds and insurance companies, have increased their allocations to alternative investments, including private equity. In addition, changes in securities laws have made it easier for private equity firms to market and raise funds from a broader range of investors. Besides thus, the rise of entrepreneurial culture and continual innovations have led to the emergence of numerous start-up companies with high growth potential. Private equity firms have shown interest in funding these start-ups, providing capital and expertise to fuel their growth and expansion.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global private equity market, along with forecasts at the global, regional, and country levels from 2023-2028. Our report has categorized the market based on the fund type.

Fund Type Insights:

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

The report has provided a detailed breakup and analysis of the private equity 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.

Regional Insights:

• 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
   

The 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 was the largest market for private equity. Some of the factors driving the North America private equity market included the low interest rates of traditional fixed-income investments, increasing need for diversification of capital, the emerging trend of start-up culture, etc.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the global private equity market. Competitive analysis such as market structure, market share by key players, player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. Some of the companies covered 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, etc. Kindly note that this only represents a partial list of companies and the complete list has been provided in the report. 

Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s 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 2017-2028.  
• The research study 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.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.