Private Equity Market  Synopsis

Private Equity Market Size Was Valued at USD 25.47 Billion in 2023, and is Projected to Reach USD 86.15 Billion by 2032, Growing at a CAGR of 14.5% From 2024-2032.

Private equity is the financial investment that is direct to private organizations or assets by an individual or a group of persons with a view of portion ownership. These investments are made by professionals working in firms that seek funds from investors such as pension funds and wealthy individuals. Thus, private equity firms are always in search of ways to generate value within their investments through operations enhancements or to carry out strategic activities or financial restructurings, with an expected efficient exit scenario, including a valuable sale or an IPO.

• Private equity market as one of the driving forces of the global to financial developments with this sector as engine of growth, investments and innovation. Private equity (PE) is a type of investment firm that collects and invests people’s money to acquire shares in private companies or bought companies in the public domain. This can be an active management strategy and overhaul of the company processes in order to bring better results and finally great returns on the investors’ money.
• It is also important to recognize that one of the most distinctive features of this market is its value proposition: long-term value creation. While public establishments, companies will constantly be under pressure from shareholders to perform and deliver in the fourth quarter, competing for shareholders’ attention and acting in the interest of short-term gains, firms in private equity equity firms are in a free position to take strategic measures and make operational changes and improvements irrespective of the results of the next quarter. Such a long-term network and patient capital approach enables the portfolio companies to invest in the innovations, launch additional products and services in new markets, or undertake measures that may take several years before they start yielding strong results but create a powerful fundament for competitive advantage and better margins in the mid and long term.
• Besides, the private equity market is vital in fostering ownership and development of new businesses as well as supporting startups and other middle-market companies in terms of funding and sound guidance. Typically, private equity investment is like a stamping ground for firms that have run into some quantitative/quality problems or are generally in poor health, which in one way or the other need the support of private capital to prod them back to a healthy competitive operation in the market. Through their participation in various stages in lifecycle of these firms, the private equity firms expand employment opportunities and facilitate consolidation of industries, besides enhancing economic progress.
• The private equity industry cannot be considered being absolutely free of criticism and scandalous activities. Some of the issues that commentators have raised includes the issues of excessive leverage, employment cuts and restructuring programs and conflict of interest regarding the management teams and investors. Likewise, there are current and continuing concerns over careless practices like lack of transparency, governance, and tax policies regarding carried interest that precipitated questions over social and economic effects of private equity investment.
• Nevertheless, authorities witness the constantly growing private equity market as long-only investors interested in achieving higher returns on investment and increasing their investment portfolios’ diversification, keep investing in PE funds. This area of investing has developed over time and, with ongoing entry of new contenders, various more sophisticated approaches to investment identified, and pressure for consideration of environmental, social, and governance (ESG) factors mounting. Furthermore, new technologies and techniques that involve the use of big data are also revolutionising how private equity firms hunt for new opportunities, evaluate risks and, ultimately, generate value in their target firms.
• There is every potential of it furthering its influence as one of the most competitive markets in the private equity business. In the given case scenario of businesses having to disappoint but adapt to the dynamic world economy, private equity will remain a key factor in the future in fulfilling the objectives of enhancing growth and creating value in varied sectors. However, the future of private equity depends entirely on the efforts developed by market stakeholders to unlock its opportunities and future problems in the industry’s development for the sake of its sustainability and a positive impact on the economy.

Private Equity Market Trend Analysis

  ESG Integration and Impact Investing

• The practice of ESG integration and the investment in impact investing private equity have also changed and developed during the years in response to the growing trend towards ESG and SRI investment. ESG has become one of the crucial factors that investors have started noting and including into their portfolios since it helps to create real value in the long term and minimizes risk. It has led to more investors seeking private equity funds that can not only deliver a ROI but also manage ESG aspects in their investments. These funds are to make investment with intention on making positive social and environmental returns alongside with yields, in a world where investors are keen on making investment decisions which reflects their belief systems. Therefore, private equity firms are in the process of broadening the usage of ESG factors in the assessment phase, investment conclusion phase, and the management phase. This, together with the regulatory push, since governments and regulatory authorities globally have been putting in place laws that support sustainable and responsible investment.
• To the same effect, the trends involving the use of platforms and metrics in impact investment have increased the degree of accountability of the private equity industry and allowed the investors to measure the impact of their investment in the business in terms of social and environmental impact. In conclusion, the integration of ESG and the impact investing in private equity market is set to expand because more investors are shifting their focus towards sustainable products that will help in improving the status of the economy in the world.

Tech Disruption in Traditional Industries

• The private equity has experienced disruption of conventional business technologies across various sectors, thus altering the hedge investment and organizational strategies. Traditionally, private equity firms mainly focused on relatively mature industries including manufacturing, energy, and retail to make significant improvements in terms of ROI issues through fi editorial engineering techniques. Nonetheless, with the technological evolutions, including artificial intelligence, blockchain, and automation, there is no way that these firms ignore their investment theses. Various industries continue to be disrupted by technology which has integrated itself into typifying value chains that used to require simple and straight-forward financial models; as such, players in the private equity space are on the lookout for players operating in industries that are being digitized. The adoption of new technologies and business models is clearly seen in industries like healthcare that sees enormous venture capital investment in telemedicine or new generation health-tech ventures that revolutionalise the ways of providing patient care. Likewise, the automotive sector has emerged as an appealing niche for private equity investment due to the increase in the popularity of electrical automobiles and self-driving cars. Furthermore, with data analytics and IoT solutions realizing supply chain solutions, the business sector has experienced operations’ progress along with stability in different industries to reduce cost to attract private equity.
• Additionally, the growth platform-based business models has led to a shift in traditional market structures with offers scability and agility previously unobserved in such industries as hospitality and real estate raising the interest of private equity firms in innovative investment opportunities. But that’s where the tech disruptions comes with its fair share of risks such as intensified competition, complicated rules governing industries, and the increased demand for specialized knowledge to tackle dynamic markets. Private equity firms on their part have had to adapt to the changed playing field by developing more diverse portfolios, cultivating affiliations with innovative tech-savvy startups, and making use of data analytics to locate high-value investment destinations in this transformative market.

Private Equity Market Segment Analysis:

Private Equity Market is Segmented based on Fund Type , Sector and Investments.

By Type, Buyout  segment is expected to dominate the market during the forecast period

These observations lead me to another conclusion that global PE market segmented by fund type reveals a variety of sectors that includes buyout, VCs, real estate, infrastructure, and distressed PE investing that commonly has distinct investment methods and risk. LEVERAGED BOUYANT FUNDS specifically target mature organizations for M&A with an aim to boost operating efficiency for profitability whereas VC funds target high-growth innovative Startups . Real estate funds focus on properties as investment that are to be held for capital appreciation while infrastructure funds concentrate on such things as roads and bridges. Distressed PE funds target assets that are in distress, whereas direct lending funds focus on providing debt. Every fund type is designed to suit a particular kind of investor or specific opportunities in the market, which allows the private equity investment industry to be truly diverse and complex. By Sector , Technology (Software) segment held the largest share in 2023

This is evident in the private equity market since every sector has its merits and demerits when dealing with mergers and acquisitions. Due to its flexibility and ability to revolutionize operating methods and techniques, Software technology alone remains an area of interest to investors. Healthcare, is still a core industry with prospects powered by innovations in health care technology and an increasing elderly populace. The BSE sector that has not been cut up by the recession remarkably is the real estate and service industry where the returns are more stable compared to the financial services which have been disrupted and regulated. Aldrich, (2002) stated that industrials are popular for their participation in infrastructure and investment attraction while consumer and retail shifts focus to e-commerce and sustainability. The energy and power investments evolve through changes to a more sustainable type of power. The telecom is combined with media and entertainment that relies on digital transformation and content distribution. Some other sectors like transport offers some micro shopping opportunities. In general, private equity investors spread their risks in the various sectors, continue to look for new opportunities while actively deploying their resources and experience to increase added values as well as the rates of returns.

Private Equity Market  Regional Insights:

North America is Expected to Dominate the Market Over the Forecast period

• North America is expected to retain its pole position in the private equity space by the forecast period attributing to certain fundamental factors. First of all, it is important to mention that every region has a large number of experienced investors and strong financial systems with efficient regulations. Further, as it was earlier pointed out private equity market of North America is experiencing growth due to sound economic conditions such as high GDP, favourable interest rates and favourable business environment along with high inflow of capital.
• Also, there is strong institutional environment throughout the region supported by strong technology and innovation hubs mainly in healthcare, information technology and consumer products industries that present numerous and substantial non-renewable investment opportunities for private equity companies. Also, there is great potential for diversification since the North American market is a large and diverse one and private equity investors shall always ensure they diversify on their portfolio to avoid extreme risks such as higher likelihood and impact in case of an unfavorable market. In substance, we can conclude that North America will remain the most popular destination for private equity investment in the nearest future due to favourable investment climate, well-developed financial background, and numerous opportunities for expansion and diversification.

Active Key Players in the Private Equity Market

• The Blackstone Group (US)
• KKR & Co. Inc. (US)
• The Carlyle Group (US)
• Apollo Global Management (US)
• Bain Capital (US)
• TPG Capital (US)
• Warburg Pincus (US)
• Advent International (US)
• General Atlantic  (US)
• Silver Lake Partners (US)
• EQT Partners ( Sweden)
• Hellman & Friedman (US)
• Vista Equity Partners (US)
• Permira (UK), and Other Key Players

Key Industry Developments in the Private Equity Market

• September 2022: Nonantum Capital Partners, a middle-market private equity firm, today announced the acquisition of LJP Waste Solutions ("LJP") from Aperion Management. LJP is a leading regional provider of non-hazardous solid waste and recycling services specializing in zero landfill and waste-to-energy solutions.
• August 2022: Indian firm Trilegal acted as the sole advisor to global consumer internet group and technology investor Prosus Ventures and PayU India for the acquisition of IndiaIdeas.com Limited (BillDesk). It is the largest-ever acquisition in the digital payments space in India, and the deal is valued at USD 4.7 billion

1. INTRODUCTION
   1. RESEARCH OBJECTIVES
   2. RESEARCH METHODOLOGY
   3. RESEARCH PROCESS
   4. SCOPE AND COVERAGE
      1. Market Definition
      2. Key Questions Answered
   5. MARKET SEGMENTATION
2. EXECUTIVE SUMMARY
3. MARKET OVERVIEW
4. GROWTH OPPORTUNITIES BY SEGMENT
5. MARKET LANDSCAPE
   1. PORTER’S FIVE FORCES ANALYSIS
      1. Bargaining Power Of Supplier
      2. Threat Of New Entrants
      3. Threat Of Substitutes
      4. Competitive Rivalry
      5. Bargaining Power Among Buyers
   2. INDUSTRY VALUE CHAIN ANALYSIS
   3. MARKET DYNAMICS
      1. Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   4. MARKET TREND ANALYSIS
   5. REGULATORY LANDSCAPE
   6. PESTLE ANALYSIS
   7. PRICE TREND ANALYSIS
   8. PATENT ANALYSIS
   9. TECHNOLOGY EVALUATION
   10. MARKET IMPACT OF THE RUSSIA-UKRAINE WAR
       1. Geopolitical Market Disruptions
       2. Supply Chain Disruptions
       3. Instability in Emerging Markets
   11. ECOSYSTEM
6. PRIVATE EQUITY MARKET BY FUND TYPE (2017-2032)
   1. PRIVATE EQUITY MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. BUYOUT, VENTURE CAPITAL (VCS)
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017 – 2032F)
      3. Historic And Forecasted Market Size in Volume (2017 – 2032F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. REAL ESTATE
   5. INFRASTRUCTURE,
   6. OTHER DISTRESSED PE
7. PRIVATE EQUITY MARKET BY SECTOR (2017-2032)
   1. PRIVATE EQUITY MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. TECHNOLOGY (SOFTWARE),
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017 – 2032F)
      3. Historic And Forecasted Market Size in Volume (2017 – 2032F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. HEALTHCARE
   5. REAL ESTATE AND SERVICES
   6. FINANCIAL SERVICES
   7. INDUSTRIALS
   8. CONSUMER & RETAIL
   9. ENERGY & POWER
   10. MEDIA & ENTERTAINMENT TELECOM
   11. OTHERS
8. PRIVATE EQUITY MARKET BY INVESTMENTS (2017-2032)
   1. PRIVATE EQUITY MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. LARGE CAP
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017 – 2032F)
      3. Historic And Forecasted Market Size in Volume (2017 – 2032F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. UPPER MIDDLE MARKET
   5. LOWER MIDDLE MARKET
   6. REAL ESTATE
9. COMPANY PROFILES AND COMPETITIVE ANALYSIS
   1. COMPETITIVE LANDSCAPE
      1. Competitive Positioning
      2. PRIVATE EQUITY Market Share By Manufacturer (2023)
      3. Industry BCG Matrix
      4. Heat Map Analysis
      5. Mergers & Acquisitions
   2. THE BLACKSTONE GROUP (US)
      1. Company Overview
      2. Key Executives
      3. Company Snapshot
      4. Role of the Company in the Market
      5. Sustainability and Social Responsibility
      6. Operating Business Segments
      7. Product Portfolio
      8. Business Performance (Production Volume, Sales Volume, Sales Margin, Production Capacity, Capacity Utilization Rate)
      9. Key Strategic Moves And Recent Developments
      10. SWOT Analysis
   3. KKR & CO. INC. (US)
   4. THE CARLYLE GROUP (US)
   5. APOLLO GLOBAL MANAGEMENT (US)
   6. BAIN CAPITAL (US)
   7. TPG CAPITAL (US)
   8. WARBURG PINCUS (US)
   9. ADVENT INTERNATIONAL (US)
   10. GENERAL ATLANTIC  (US)
   11. SILVER LAKE PARTNERS (US)
   12. EQT PARTNERS ( SWEDEN)
   13. HELLMAN & FRIEDMAN (US)
   14. VISTA EQUITY PARTNERS (US)
   15. PERMIRA (UK)
10. GLOBAL PRIVATE EQUITY MARKET BY REGION
    1. OVERVIEW
    2. NORTH AMERICA
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Fund Type
       4. Historic And Forecasted Market Size By Sector
       5. Historic And Forecasted Market Size By Investments
       6. Historic And Forecasted Market Size By Country
          1. USA
          2. Canada
          3. Mexico
    3. EASTERN EUROPE
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Russia
          2. Bulgaria
          3. The Czech Republic
          4. Hungary
          5. Poland
          6. Romania
          7. Rest Of Eastern Europe
    4. WESTERN EUROPE
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Germany
          2. United Kingdom
          3. France
          4. The Netherlands
          5. Italy
          6. Spain
          7. Rest Of Western Europe
    5. ASIA PACIFIC
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. China
          2. India
          3. Japan
          4. South Korea
          5. Malaysia
          6. Thailand
          7. Vietnam
          8. The Philippines
          9. Australia
          10. New-Zealand
          11. Rest Of APAC
    6. MIDDLE EAST & AFRICA
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Turkey
          2. Bahrain
          3. Kuwait
          4. Saudi Arabia
          5. Qatar
          6. UAE
          7. Israel
          8. South Africa
    7. SOUTH AMERICA
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Brazil
          2. Argentina
          3. Rest of South America
11. INVESTMENT ANALYSIS
12. ANALYST VIEWPOINT AND CONCLUSION
    1. Recommendations and Concluding Analysis
    2. Potential Market Strategies