Private Equity Market Definition
Industry Perspective:
The global private equity market was worth USD 694.97 billion in 2022 and is estimated to grow to USD 1,458.59 billion by 2030, with a compound annual growth rate (CAGR) of approximately 9.71% over the forecast period. The report analyses the private equity market’s drivers, restraints, and challenges and the effect they have on demand during the projection period. In addition, the report explores emerging opportunities in the private equity market.
Private Equity Market: Overview
Private equity is a type of investing that entails the purchase and ownership of shares or equity in privately held businesses. It is distinguished by the utilization of funds from high-net-worth individuals, institutional investors, or specialized corporations to support company acquisition and restructuring. Private equity organizations seek to create significant returns on their investments over a set period, usually five to seven years. The active involvement of investors in the management and strategic decision-making of the purchased company is a major element of private equity. Private equity firms frequently contribute their knowledge, network, and operational improvements to increase the value of a company. In addition, to drive growth and profitability, they may reform corporate governance, streamline operations, and optimize the company’s financial structure. Private equity provides access to large finance as well as operational knowledge, which can fuel growth and expansion. It also enables businesses to obtain long-term money that would otherwise be unavailable through regular financing channels. As a result, it plays a key role in the global economy, promoting innovation, job creation, and economic growth.
nForming Private Equity Market Smart Book
The nForming Private Equity Market Smart Books offer a comprehensive compilation of data pertaining to historical revenue, user volume, patient data, prices, and other relevant information for each segment. This includes products and services, type of indication, age group, and detailed analysis of service providers with coverage at both regional and country levels. The data spans the past three years and provides projections up until 2030. The smart book also provides extensive information on the leading suppliers and their corresponding market shares in the Private Equity Market. The private equity market comprises a range of qualitative factors, including significant growth drivers, opportunities, and challenges.
Private Equity Market: Recent Developments
The Private Equity industry is seeing a variety of developments. Among the major developments areas are:
Recent Developments
- In September 2022, Nonantum Capital Partners, a middle-market private equity fund, announced today the purchase of LJP Waste Solutions (“LJP”) from Aperion Management. LJP is a significant regional provider of non-hazardous solid waste and recycling services, specializing in zero landfill and waste-to-energy solutions.
- In August 2022, For the acquisition of IndiaIdeas.com Limited (BillDesk), Indian law firm Trilegal served as the only counsel to global consumer internet group and technology investor Prosus Ventures and PayU India. It is India’s largest-ever acquisition in the digital payments market, valued at USD 4.7 billion.
Read more opportunities in Private Equity market in the Smart Book.
Private Equity Market Drivers
Global increase in private equity activities to drive market growth
The market for private equity is expanding significantly due to the global increase in private equity activities. The private equity business is regarded as a major source of finance for buyouts among start-up companies, private middle-market companies, financial distress companies, and public companies. In the last 15 years, it has been the fastest-expanding corporate finance market. Furthermore, private equity firms have recently shifted their focus to the acquisition of entire public corporations in order to accelerate expansion. Various variables, including a strong emphasis on cash flow, margin improvement, and flexible, strict public sector regulations, fuel the private equity market’s ability to provide high returns.
Private Equity Market: Restraints
Illiquidity hinders market growth.
One of the most significant constraints on the private equity market is illiquidity. It is the challenge of promptly and affordably transforming an investment into cash. Private equity investments are often illiquid because they are made in privately held companies that do not have publicly traded shares. This means that there is no immediate market for private equity investments, and investors may have to wait years to exit their investments.
Read all the major drivers and trends of the private equity market in the Smart Book.
Private Equity Market Regional Landscape
North America dominated the Private Equity market in 2022
A variety of reasons have led to North America’s supremacy in the private equity sector. Many of the top private equity firms in the world are based in North America. These companies are appealing to both domestic and foreign investors because they have a proven track record of providing returns for their capital. Moreover, there is a sizable and varied pool of investment targets in North America. This covers businesses of all shapes and sizes, from Fortune 500 firms to start-ups. There is a significant innovation and entrepreneurial culture in North America. For private equity firms, this generates a pipeline of fresh investment opportunities.
Read more competitive developments in the Private Equity Market Smart Book.
Private Equity Market Key Companies
Advent International
TPG Inc.
KKR & Co. Inc.
Apollo Global Management, Inc.
Neuberger Berman Group LLC
Blackstone Inc.
EnCap Investments
Carlyle Group
Warburg Pincus LLC
CVC Capital Partners.
Private Equity Market Segmentation:
The global private equity market has been segmented into service, end-user, and mode of transit.
Based on fund type, buyout, venture capital, real estate, infrastructure, and others, these are segments of the global private equity market. The buyout segment dominated the market in 2022. Buyout funds invest in mature companies, often purchasing a controlling share with the goal of improving the business and departing at a greater multiple. There are several reasons why buyout funds constitute the largest component of the private equity market.
Based on sector, the market is classified into technology (software), healthcare, real estate and services, financial services, industrials, consumer & retail, energy & power, media & entertainment, telecom, and others. In 2022, the technology processing category dominated the global market.
Based on investment size, the market is classified into large-cap, upper-middle, lower-middle, and real estate sources. In 2022, the large-cap category dominated the global market. A significant source of funding and expertise for big businesses is the large-cap private equity market.
Segmentation:
Private Equity Market, By Fund Type |
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Private Equity Market, by Sector |
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Private Equity Market, by Investment Size |
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Private Equity Market, By Geography |
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Frequently Asked Questions (FAQs):
- Which key factors will influence private equity market growth over 2023-2030?
The main reasons anticipated to propel the private equity market during the forecast period are the market’s availability of a large amount of money and the growing requirement for that capital’s diversification.
- What will be the value of the private equity market during 2022-2030?
According to the report, the global private equity market size was worth USD 694.97 billion in 2022 and is estimated to grow to USD 1,458.59 billion by 2030, with a compound annual growth rate (CAGR) of approximately 9.71% over the forecast period.
- Which region will contribute notably towards the private equity market value?
North America is anticipated to continue leading the Private Equity market throughout the projected period.
- Which are the major players leveraging the Private Equity market growth?
Some of the main competitors dominating the global Private Equity market include – Advent International, TPG Inc., KKR & Co. Inc., Apollo Global Management, Inc., Neuberger Berman Group LLC, Blackstone Inc., EnCap Investments, Carlyle Group, Warburg Pincus LLC, CVC Capital Partners.
