Private Equity Market Report 2025

The private equity market size has grown rapidly in recent years. It will grow from $480.8 billion in 2024 to $530.31 billion in 2025 at a compound annual growth rate (CAGR) of 10.3%. The growth in the historic period can be attributed to increasing globalization and interconnection, increasing consumer spending and business opportunities, increasing demand for modern infrastructure, increasing financial costs, and growing need for diversification.

The private equity market size is expected to see rapid growth in the next few years. It will grow to $778.15 billion in 2029 at a compound annual growth rate (CAGR) of 10.1%. The growth in the forecast period can be attributed to increasing investment in digital health startups, rising interest rates, increasing competition from strategic investors, rise of start-up culture, and increase in entrepreneurial activity. Major trends in the forecast period include Increasing investments in technology, technological advancements, adoption of big data analytics, integration of artificial intelligence (AI) and machine learning (ML), and adoption of robotic process automation.

The forecast of 10.1% growth over the next five years reflects a slight reduction of 0.1% from the previous projection. This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through reduced deal flow efficiency, as due diligence automation tools and portfolio company monitoring systems, largely imported from the United Kingdom and Israel, become subject to maintenance cost increases. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The expansion of the startup ecosystem is anticipated to drive the growth of the private equity market. Startups, defined as nascent companies in their early development stages, typically aim to introduce innovative products, services, or technologies to the market. The increase in startups is attributed to greater access to funding and a rising demand for dynamic and flexible work environments. This trend facilitates the proliferation of private equity firms, enhances their financial stability, and improves their prospects for long-term success. For instance, in February 2024, Startups.co.uk, a UK-based business advisory website, reported that the number of new businesses in the UK reached 39,966 in 2023, representing a 6.5% increase compared to 2022. Consequently, the growing number of startups is fueling the expansion of the private equity market.

Leading firms in the private equity market are concentrating on developing innovative products such as private equity secondary products to offer investors improved liquidity options, diversify investment portfolios, and capitalize on compelling opportunities within private equity funds and companies. Private equity secondaries, or the secondary market for private equity, involve the trading of pre-existing investor commitments to private equity funds. This market enables investors to liquidate their stakes in private equity funds prior to the end of the fund's term, thereby providing liquidity in a traditionally illiquid asset class. For example, in February 2024, Collar Capital, a Brazil-based financial services firm, introduced the Coller Secondaries Private Equity Opportunities Fund ("C-SPEF"), a tender offer fund designed specifically for accredited high-net-worth investors. This private equity secondaries-only offering provides a new avenue for individuals to invest in private markets through a diversified, institutional-quality portfolio. C-SPEF aims to deliver attractive absolute and risk-adjusted returns, diversification, and enhanced liquidity compared to conventional private equity funds. Additionally, C-SPEF offers an incentive for early investors by waiving the management fee for the first year and not charging a performance fee.

In September 2023, Societe Generale, a France-based financial services company, partnered with Brookfield Corporation to launch a new private debt fund with a target of $10.38 billion (€10 billion) over the next four years. This partnership aims to leverage the combined origination capabilities, operational expertise, real asset knowledge, and robust institutional relationships of both companies to deliver additional value to their clients and shareholders. Brookfield Corporation, a Canada-based investment management company, specializes in private equity.

Major companies operating in the private equity market are Berkshire Hathaway Inc., Brookfield Corporation, Blackstone Inc., Clayton Dubilier& Rice Information(CDR) LLC, EQT AB, KKR & Co. Inc., The Carlyle Group Inc., Hellman & Friedman LLC, Warburg Pincus LLC, TPG Capital (TPG) Inc., General Atlantic Service Company L.P, Silver Lake Technology Management L.L.C., Vista Equity Partners, Advent International Corporation, Permira, Bain Capital LP, Francisco Partners Management L.P, L Catterton, CVC Capital Partners, Insight Partners.

North America was the largest region in the private equity market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the private equity market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the private equity market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The private equity market includes revenues earned by entities through growth capital, operational improvement, management support, corporate governance, financial engineering, related equity investments, debt financing, venture capital, growth capital, and restructuring solutions. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a considerable impact on the financial sector, particularly in the areas of investment strategies and risk management. The increased tariffs have intensified market volatility, leading institutional investors to adopt more cautious approaches and driving greater demand for hedging solutions. Banks and asset managers are encountering higher costs in cross-border transactions as disrupted global supply chains and declining corporate earnings weigh on equity market performance. At the same time, insurance providers are facing elevated claims risks linked to supply chain interruptions and trade-related business losses. Furthermore, reduced consumer spending and weaker export demand are limiting credit growth and dampening investment appetite. In response to these challenges, the sector must focus on diversification, accelerate digital transformation, and strengthen scenario planning to manage the heightened economic uncertainty and safeguard profitability.

Private equity involves investments made directly into private companies, which are not listed on public stock exchanges, or into public companies with the intent of delisting them. These investments are usually conducted by private equity firms or individual investors, who often take an active role in managing or restructuring the companies to enhance performance and increase value.

The main types of private equity funds include buyouts, venture capital (VC), real estate, infrastructure, and others. Buyout funds concentrate on acquiring mature companies or business units, typically using a mix of equity and debt financing. Investors in private equity include institutional investors, high-net-worth individuals, family offices, and funds of funds. These investments are applied across various industries such as healthcare, technology, consumer goods, energy and infrastructure, financial services, and others.

The private equity market research report is one of a series of new reports that provides private equity market statistics, including private equity industry global market size, regional shares, competitors with a private equity market share, detailed private equity market segments, market trends, and opportunities, and any further data you may need to thrive in the private equity industry. This private equity market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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