Private Equity Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Fund Type (Buyout, Venture Capital (VCs), Real Estate, Infrastructure, Others), By Sector (Technology, Healthcare, Financial Services, Energy & Power, Others), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 681.12 Billion
CAGR (2026-2031)	14.05%
Fastest Growing Segment	Technology
Largest Market	North America
Market Size (2031)	USD 1498.98 Billion

Market Overview

The Global Private Equity Market will grow from USD 681.12 Billion in 2025 to USD 1498.98 Billion by 2031 at a 14.05% CAGR. Private equity constitutes an alternative investment class where pooled capital is utilized to acquire equity ownership in companies that are not listed on public stock exchanges. The market is fundamentally supported by the potential for superior returns driven by active management and operational restructuring, which allow firms to unlock value in underperforming assets. Furthermore, the robust accumulation of committed but uninvested capital, known as dry powder, alongside the increasing preference for companies to remain private to maintain strategic flexibility, provides a strong foundation for sustained market growth.

However, the industry faces a significant challenge from prolonged high interest rates, which increase the cost of leverage and frequently lead to valuation disparities between buyers and sellers, thereby dampening deal velocity. This environment compels fund managers to prioritize tangible performance improvements over financial engineering to achieve target returns. According to the American Investment Council, in 2024, private equity firms invested in over 7,000 businesses in the United States, demonstrating the sector's continued resilience and capacity to deploy capital into the real economy despite complex macroeconomic headwinds.

Key Market Drivers

The structural growth of the secondary market for liquidity solutions has emerged as a primary engine for the Global Private Equity Market, addressing the critical need for exit routes amidst stagnant IPO activity. This mechanism allows limited partners to monetize their stakes and general partners to retain high-performing assets through continuation vehicles, thereby sustaining capital velocity. This segment has seen explosive activity as investors actively rebalance portfolios to manage allocation limits. According to Jefferies, January 2025, in the 'Global Secondary Market Review', global secondary transaction volume surged to a record $162 billion in 2024, driven by a convergence of narrowing bid-ask spreads and robust demand for diversified limited partner portfolios.

Concurrently, the deployment of record levels of dry powder into strategic acquisitions is revitalizing deal flow as firms face mounting pressure to return capital to investors. Fund managers are utilizing this accumulated capital to execute take-private transactions and corporate carve-outs, capitalizing on valuation adjustments in specific sectors. This urgency to invest is underpinned by massive reserves; according to BlackRock, in 2024, private equity firms held approximately $2.5 trillion in dry powder globally, providing a substantial war chest for dealmaking. This improved sentiment is evident in recent activity, as according to Reuters, October 2024, the volume of global private equity-led buyouts increased by 42% in the third quarter compared to the prior year, signaling a decisive shift toward capital deployment despite prevailing macroeconomic uncertainties.

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Key Market Challenges

Prolonged high interest rates impose a significant constraint on the Global Private Equity Market by fundamentally altering the economics of deal-making. Since the industry relies heavily on leverage to amplify returns, elevated borrowing costs directly erode the potential profitability of acquisitions. This increase in the cost of capital compels buyers to downwardly adjust their pricing models, creating a substantial valuation gap with sellers who continue to expect premiums associated with a low-rate environment. As a result, this disparity stalls negotiations and extends transaction timelines, leading to a noticeable deceleration in deal velocity as firms struggle to align on price.

This environment also hampers liquidity, as the challenges in securing affordable debt financing make it difficult for fund managers to exit portfolio companies at attractive valuations. The consequent slowdown in distributions to limited partners limits the recycling of capital into new funds. According to Invest Europe, in the first half of 2024, buyout investment activity recorded a 38% decline compared to the same period in the previous year, with total values falling to €23 billion. This contraction underscores how financing pressures have directly restricted the industry's ability to deploy capital.

Key Market Trends

The Democratization of Access for Retail and Wealth Management Investors represents a fundamental structural shift as private equity firms actively court individual investors to diversify their capital base beyond institutional limited partners. With traditional institutional fundraising constrained by allocation limits, managers are launching semi-liquid "evergreen" funds and dedicated technology platforms to tap into the vast, under-allocated global private wealth market. This strategy provides a continuous source of permanent capital, reducing reliance on the cyclicality of institutional fundraising and offering a stickier asset base. According to Private Debt Investor, February 2025, in the article 'Public-private convergence of alts is key in Apollo's 2024 report', Apollo Global Management amassed a record $12 billion of inflows from wealthy individuals in 2024, a 50% increase from the prior year, underscoring the rapid adoption of alternative assets by individual investors.

Simultaneously, the industry is witnessing a decisive Expansion into Private Credit and Direct Lending Strategies, transforming traditional buyout firms into diversified alternative asset managers. As regulatory pressures force traditional banks to retrench from corporate lending, private equity sponsors are aggressively filling the void, deploying flexible debt capital to finance leveraged buyouts, infrastructure projects, and corporate growth. This pivot allows firms to generate stable, fee-related earnings that are less correlated with equity market volatility while offering borrowers execution certainty in a tight financing environment. According to Private Equity Wire, December 2025, in the article 'Private credit deployment reached record $592.8bn in 2024', private credit managers deployed a record $592.8 billion in 2024, representing a 78% increase on the previous year, driven largely by the sector's largest platforms.

Segmental Insights

The Technology segment is identified as the fastest-growing category within the global private equity market due to the accelerating demand for digital transformation across traditional industries. Investors are prioritizing this sector because software and technology services frequently utilize scalable business models that generate stable and recurring revenue streams. Furthermore, the continuous integration of cloud computing and automation tools creates significant opportunities for operational improvement and value creation. This sustained need for modern digital infrastructure drives private equity firms to consistently allocate substantial capital toward acquiring and expanding technology enterprises.

Regional Insights

North America maintains a dominant position in the global private equity market due to substantial capital deployment and a high concentration of established investment firms. The United States drives this leadership through consistent deal activity, particularly in the technology and healthcare sectors. This growth is supported by a mature financial infrastructure and the regulatory oversight of the U.S. Securities and Exchange Commission, which fosters a transparent environment for investors. Consequently, the region attracts significant funding, solidifying its status as the primary hub for buyout funds and venture capital opportunities globally.

Recent Developments

• In September 2024, Blackstone, in collaboration with the Canada Pension Plan Investment Board, entered into a definitive agreement to acquire AirTrunk, a leading Asia-Pacific data center platform. The transaction valued the digital infrastructure company at an implied enterprise value of over A$24 billion, marking the investment firm’s largest investment in the Asia-Pacific region. The acquisition was executed through multiple strategies, including real estate and infrastructure funds. This strategic move was designed to capitalize on the robust demand for cloud services and artificial intelligence, significantly expanding the firm's global portfolio of data centers and related services.
• In July 2024, Thoma Bravo completed the acquisition of Everbridge, a global leader in critical event management and national public warning solutions. The all-cash transaction valued the software company at approximately $1.8 billion, with shareholders receiving $35.00 per share. Following the completion of the deal, the acquired company ceased trading on the public market. The private equity firm intends to leverage its extensive software expertise to accelerate the company's product innovation and growth. This acquisition underscores the investment firm's continued focus on strengthening its portfolio in the security and risk management software sectors.
• In April 2024, Silver Lake entered into a definitive agreement to acquire the remaining shares of Endeavor Group Holdings that it did not already own. The take-private transaction valued the sports and entertainment company at an equity value of $13 billion. Under the terms of the agreement, shareholders were entitled to receive $27.50 per share in cash, representing a significant premium over the company's unaffected share price. This strategic move allowed the private equity firm to consolidate its investment in the global sports and entertainment giant, reinforcing its commitment to investing in category-defining technology and media companies.
• In January 2024, BlackRock entered into an agreement to acquire Global Infrastructure Partners for a total consideration of $12.5 billion in cash and stock. This strategic acquisition was designed to create a market-leading infrastructure investment platform with combined assets under management exceeding $150 billion. The transaction involved the payment of $3 billion in cash and approximately 12 million shares of the acquiring firm's common stock. By integrating the independent infrastructure fund manager, the company aimed to meet growing client demand for private market assets and capitalize on long-term structural trends in energy, transport, and digital infrastructure.

Key Market Players

• 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
• The Carlyle Group
• Warburg Pincus LLC

By Fund Type	By Sector	By Region
Buyout Venture Capital (VCs) Real Estate Infrastructure Others	Technology Healthcare Financial Services Energy & Power Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Private Equity Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Private Equity Market, By Fund Type:

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

• Private Equity Market, By Sector:

• Technology
• Healthcare
• Financial Services
• Energy & Power
• Others

• Private Equity Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE