Private Equity Market Size & Share 2026-2035

Private Equity Market Size

The global private equity market was valued at USD 7.2 trillion in 2025. The market is expected to grow from USD 7.5 trillion in 2026 to USD 21.7 trillion in 2035 at a CAGR of 12.6%, according to latest report published by Global Market Insights Inc.

As institutional investors look for better long-term returns and more diverse portfolios than with traditional asset classes, they have continued to shift more of their asset allocations towards private equity investments. Pension funds, sovereign wealth funds, insurance companies, endowment funds and family offices are steadily increasing their commitments to investments in private equity and continuing to invest with record levels of dry powder supporting deal activity across a range of investment types through the buyout, growth equity, venture capital and special situations sectors.

Market growth is expected to continue throughout the forecast period because of the increasing maturity of private capital and the expansion of available investment opportunities in both developed and emerging markets. An ongoing trend in the private equity market is the widespread movement of limited partners (LPs) toward alternative investments. Institutional investors remain committed to reallocate capital from public equity markets and traditional fixed income investments into private equity in order to improve long-term portfolio performance, increase diversification, and generate superior risk-adjusted returns. Continued participation by pension funds, sovereign wealth funds, insurance companies and family offices will continue to provide strong capital inflows to private equity funds around the globe.^{[1]International Monetary Fund (IMF), https://www.imf.org}

The rapid accumulation of uninvested capital (known as dry powder) has enabled private equity firms to have significant capacity to invest. The large amounts of fundraising activity in recent years have allowed fund managers to make larger acquisitions, platform investments, add-on acquisitions and sector-specific growth investments despite a challenging macro environment. The ongoing significant amount of deployable capital continues to intensify competition for high-quality assets, as well as support a high level of deal activity around the world.^{[2]Organisation for Economic Co-operation and Development (OECD), https://www.oecd.org}

The growing democratization of private equity investment is expanding the investor base beyond traditional institutional investors. The creation of evergreen funds, semi-liquid investment vehicles, feeder funds, and digital wealth platforms are improving access to accredited retail investors and high-net-worth individuals. This increased participation results in increased capital formation and continued long-term growth of the market across both developed and emerging markets.^{[3]Invest Europe, https://www.investeurope.eu}

Artificial intelligence is changing the way private equity firms create value across portfolios. Fund managers are using AI-based analytics, predictive modeling, automation and operational intelligence to more effectively perform due diligence, optimize portfolio company performance, increase operational efficiencies and more effectively identify acquisition opportunities. As AI becomes more prevalent across industries, private equity firms will have an increased opportunity to realize improved operational performance and investment returns through technology-based value creation initiatives.^{[4]World Bank, https://www.worldbank.org}

Private Equity Market Trends

There has been a very large amount of change in the private equity space over the past few years as more institutional capital has flowed into alternative investments, and fund managers have started to use technology for the purpose of enhancing their investment outcomes. The increased amount of institutional demand for items such as secondary transactions, AI-enabled portfolio management and innovative forms of investment structures has begun to shift the competitive landscape; furthermore, as more retail investors enter the private marketplace, there is a larger number of people who are able to participate in the private equity market.

Institutional investors are increasing their allocation to private equity (and therefore into private market investments) as they look for higher returns over the long run, lower volatility in the public markets, and an increase in their overall diversification. Pension funds, sovereign wealth funds, and insurance companies all continue to invest heavily in private equity. This increased interest among institutional investors is resulting in greater fundraising activity and deployment of capital across the globe.

As investors continue to look for greater liquidity and stability within their portfolios, they are also continuing to see significant growth in terms of various alternative exit strategies, such as secondary transactions, continuation funds and GP-led funds. These types of investments are becoming more critical than ever due to the lack of IPO activity and longer holding periods of investments, which is creating greater liquidity and flexibility in the market and allowing for more capital to be recycled.^{[5]Institutional Limited Partners Association (ILPA), https://ilpa.org}

Artificial intelligence (AI) is being utilized more than ever before by many private equity firms for the purpose of sourcing investments, conducting due diligence, creating a method of tracking and monitoring a portfolio, as well as improving operations at the portfolio company level. In addition to AI being used for the purposes of making better decisions, the use of AI by a private equity firm is providing that firm with the ability to identify opportunities to create value and improve the overall operational efficiency of their portfolios faster than ever before.

In order to provide more accredited retail investors and high-net-worth individuals access to the markets, the investment management industry is creating new types of private equity fund structures that are designed to allow investors who are interested in acquiring assets through private equity investments greater flexibility with their investments and options for liquidity and easier access to private market investment opportunities.

Private Equity Market Analysis

Based on fund, the private equity market is divided into buyout, venture capital, growth equity and distressed/special situations. The buyout segment dominated the market, accounting for 61.4% in 2025 and is expected to grow at a CAGR of 12.7% through 2026 to 2035.

• The buyout fund model is still prevalent due to increased activity in leveraged buyouts (LBOs) and corporate carve-outs within various mature industry sectors.
• Institutional investors continue to favour buyouts as their distribution returns generally offer consistent cash flow, combined with an ability to create operational value in each asset they acquire through operational efficiencies.
• Management buyouts (MBOs) continue to be a viable exit option for those businesses wishing to ensure the ongoing success of their organisation or restructure their lines of business.
• The venture capital industry is still experiencing strong growth rates, particularly among companies in emerging technologies like AI, fintech and healthcare/enterprise software.
• There has been an increase in growth equity as well as commercial finance investments among established businesses requiring access to expansion capital without losing complete control of their company.
• Distressed or special situation funds have been well positioned for successful restructuring because of a combination of the rising interest rates and uncertain economic environment.

• The world's largest private equity firms are the main drivers behind mega-cap transactions and are able to support their efforts with large amounts of institutional capital, financing through syndicates and a growing number of multinational corporations making cross-border acquisitions.
• Within the market place, large-cap transactions represented nearly 27% of all volume for 2025, as a result of consolidation within industries, corporate carve-outs, and buying established companies with consistent cash flow.
• Mid-market transactions remain very popular among investors because of their favourable valuation multiples, opportunity for operational improvement, and strong value creation potential across a range of sectors/diversified industries.
• Lower mid-market transactions are growing due to small and medium sized enterprises seeking to access capital for expansion, digitisation and geographic diversification.
• Small-cap investments will continue to play a critical role in supporting entrepreneurship, innovation, and the early sales growth phases of new businesses, especially in technology, health care products and distinctive new industries.
• Increasingly, investors are diversifying capital across different deal sizes to mitigate portfolio risk, enhance long term returns and make the most of business growth opportunities at all stages.

Based on sector, the private equity market is segmented into technology & software, healthcare & life sciences, financial services, industrials & manufacturing, energy & infrastructure, consumer goods & retail, real estate (REPE), and others. The technology & software segment dominates the market, accounting for 24.4% share in 2025, and the segment is expected to grow at a CAGR of 14.2% from 2026 to 2035. 

• With the rapid digital transformation of various industries, the main beneficiary of private equity investments has remained technology-based.
• The investment themes attracting the most interest from investors continue to be AI, cybersecurity, cloud computing, SaaS and fintech.
• The healthcare sector continues to attract investment based on the ageing population, ongoing advancements in biotechnologies & ever-growing digitalisation of this industry.
• The focus of industrial & manufacturing investments has primarily been on automation & robotics providing support functions related to upgrading supply chains.
• Due to the increasing demand for renewable energy sources and digitalised energy infrastructure, Energy and Infrastructure Investments are increasing.
• Consumer goods and retail companies are actively looking to grow through the consolidation of existing brands; by focusing on changing their retail stores to an omnichannel experience and growing through e-commerce.

Based on investor, the private equity market is segmented into pension funds, insurance companies, sovereign wealth funds (SWFs), endowments & foundations, family offices & HNWIs, fund of funds, and others. Pension funds segment dominates the market, accounting for 36.5% share in 2025, and the segment is expected to grow at a CAGR of 14.1% from 2026 to 2035. 

• Pension funds continue to be primary limited partners, as they typically have long-term investment goals and possess diversified portfolio strategies.
• Sovereign wealth funds extend their direct investments in addition to their Co-investments by increasing the amount of direct/private equity investments made in global/private equity funds.
• Insurance companies are replacing traditional fixed-income investments with diversified, private market exposure to achieve steady, reliable, long-term returns.
• Family offices are allocating an increasing amount of their capital to growth equity and venture capital.
• Funds of funds help diversify investment risks by diversifying across all asset classes without having to take on concentration risks of individual securities.
• Endowments and Foundations are allocating to alternative asset classes in order to enhance their portfolio performance.

U.S. private equity market reached USD 3.5 trillion in 2025, with a CAGR of 11.8% from 2026 to 2035.

• U.S. has the most private equity activity globally with large asset managers (eg. Blackstone, KKR, Apollo, Carlyle, TPG) and a fully-developed institutional investor environment.
• Large contributions from pension funds, university endowments, sovereign wealth funds and family offices drive fundraising deals and portfolio expansion across various sectors.
• Technology, healthcare, business services, finance and infrastructure are still the largest sectors for investment; AI contributed value and secondary transactions are changing the way investments are made.

North America dominated the private equity market with a market size of USD 4 trillion in 2025. 

• North America is blessed with well-developed capital markets, financial infrastructure, and robust regulations, which promote private equity investments.
• Further growth in buyouts, growth equity, private credit, and infrastructure deals will drive further market growth in the coming years.
• Growing use of artificial intelligence-based analytics, value creation through operations, and digital transformation efforts in portfolio companies have further enhanced the competitiveness of the region.

Europe private equity market generated revenue of USD 1.7 trillion in 2025.

• Global investors from around the world are increasingly looking to European countries for ways to invest quality assets through their wide variety of investment opportunities.
• Due the current global focus on ESG (Environmental, Social and Governance) investment, as well as infrastructure modernization, renewable energy, and digital transformation, there will be many opportunities for investors to secure their place in the European market.
• In addition to this, the ongoing rise in secondary transaction volumes (particularly within Private Equity), General Partner (GP) led continuation funds and cross-border acquisitions are all helping to facilitate continued growth of the European market.

Germany private equity market dominates the European market, accounting for 36.3% of regional market share in 2025 and growing with a CAGR of 12.9% from 2026 to 2035.

• The factors behind Germany's dominance as the European leader in private equity are due to its strong industrial economy, the presence of large between capitalist and multilateral capitalist form of enterprise also known as “Mittelstand” (the middle class), sophisticated developments in its manufacturing sector, and its favourable political/economic climate have lead to the presence of private equity from both latitudes (defining by either a portfolio or direct purchase) and from globally oriented firms.
• As a result, there continue to be a significant amount of private equity transactions in Germany, across all industries including (but not limited to) industrials, technology, healthcare, automotive, renewable energy, and business services – all supported by increasing digital transformation, as well as corporate succession opportunities.
• Germany's well-established finance ecosystem; its attractive investment climate; and increasing cross-border M&A activity is further bolstering Germany as the largest private equity region in Europe.

The Asia Pacific private equity market is anticipated to grow at the highest CAGR of 16.4% from 2026 to 2035 and generated revenue of USD 1 trillion in 2025. 

• Private equity has been growing rapidly throughout the world due to continued international economic growth, increases in the number of startups and more institutional capital flows into private equity funds in Asia.
• While countries such as India, Southeast Asia, Australia and Japan have all experienced continued inflows of capital into technology, healthcare, financial services, and infrastructure sectors, they have also continued to see increases in people's disposable income, the development of digital economies and positive demographic trends, which will continue to provide long-term tailwinds for the continued growth of these countries' economies.

China private equity market is estimated to grow with a CAGR of 17.4% from 2026 to 2035.

• China's position as one of the world's largest markets is supported by its rapidly expanding industrialization, its rapidly progressing digital transformation and the amount of private capital that is flowing into China.
• In addition, private equity investors will continue to invest significant amounts of capital in sectors such as technology, manufacturing, healthcare, consumer products and renewable energy and China's government policies to foster innovation, advanced manufacturing and domestic consumption will continue to create even more opportunities for long term investment.

Latin America private equity market shows lucrative growth with a CAGR of 13.4% over the forecast period generated revenue of USD 300 billion in 2025.  

• Rising foreign direct investments, as well as increasing macroeconomic stability, contribute to creating a heightened level of investor confidence across the entire region.
• The expanding digital transformation, infrastructure investments, and funding of startups should continue to create appealing Private Equity investment opportunities.
• An increase in demand for expansion capital from SMEs is anticipated to help sustain continued development of markets.

Brazil private equity market is estimated to grow with a CAGR of 14.2% from 2026 to 2035 and reached USD 100 billion in 2025.  

• Brazil is the biggest private equity industry in the region owing to its diverse economy and expansion of its financial industry.
• The sectors of consumer goods, healthcare, logistics, financial services and renewable energy are still at the top of the list.
• Further economic reforms along with increased involvement of the private sector are anticipated in the future.

Middle East and Africa private equity market accounted for USD 150 billion in 2025 and is anticipated to show lucrative growth over the forecast period. 

• In the GCC region, sovereign wealth funds have been making increasing investments in private equity and alternative assets worldwide.
• There are many new areas of investment arising from digitalization, infrastructure development, healthcare and energy transition.
• Increased startup investments and entrepreneurial ecosystem development will lead to increased private equity investments in the future decade.

Saudi Arabia dominates the region private equity market is expected to experience substantial growth in the Middle East and Africa exhaust system market, with a CAGR of 16.2% from 2026 to 2035.

• Saudi Arabia has become the largest private equity industry in the Middle East and of the Africa Region. This can largely be attributed to Vision 2030, as well as its rapidly diversifying economy, privatization efforts by the government and strong governmental support of the private sector through investment.
• The country has demonstrated a high level of attraction for private equity investments across multiple sectors: financial services, health care, technology, logistics, renewable energy, infrastructure, and manufacturing are all areas where there exists significant opportunity for investment by both private equity and strategic investors.
• In addition, continued involvement by the Saudi Public Investment Fund (PIF), the increase in foreign direct investment (FDI), continued regulatory reform and the expansion of the start-up ecosystem will contribute further to establishing Saudi Arabia as the preferred P/E market in this region.

Private Equity Market Share

The top 7 companies in the private equity industry are Blackstone, KKR, Apollo Global Management, EQT, Carlyle, TPG and CVC Capital, and, contributing 20.2% of the market in 2025.

• Blackstone owns the largest portfolio that covers all sectors in private equity, which is the largest private equity firm globally. It is due to the diversified investment approach and the good relationship between the firm and institutions that make Blackstone remain ahead in the private equity market.
• KKR is well international established because of the diversified portfolio covering private equity (buyouts and venture capital), infrastructure, energy, real estate, and credit. The firm brings value to its portfolio by adding value through the operational value add, acquisition, and sector-specific investment strategy in the developed and developing countries.
• Apollo Global Management is recognized for its integrated platform of private equity, private credit, hybrid capital and insurance. The firm has experience in complex transactions, distressed investment and large scale buyouts that allows it to take advantage of various investment opportunities around the world.
• EQT is founded in 1995 with current annual revenues of approximately 10 trillion euros and a global reach, focuses primarily on venture capital-style investments in small to mid-cap technology and other rapidly growing companies in the U.S. and Europe. The approach uses machine learning and data analytics capabilities to identify and exploit new business opportunities. They utilize these same tools to track trends, create technological/innovative products/services, and provide high-quality customer service through its portfolio of companies across multiple industry sectors.
• Carlyle has a diversified private equity investment strategy with an emphasis on technology, healthcare, consumer, industrial, financial services and infrastructure sectors. The Carlyle Group has a global presence and a deep knowledge of different industries; therefore they are able to add long-term value for their equity investments.
• TPG is one of the larger U.S. private equity firms focused on investing in technology companies, has an extensive portfolio of successful investments in companies throughout various sectors, such as telecommunications, media/entertainment, software, and financial services.
• CVC founded in 1996 by funding provided by a group of 14 founders, including Doughty Hanson & Co., York Capital Management, Bain Capital, Adams Street Partners, Carlyle Group, Force Holdings, Blackstone Group, Highland Capital Partners, White Mountains Insurance Group and Winton Group, CVC has over 1 trillion pounds worth of assets under management across private equity and public markets platforms. Headquartered in London, they also have offices in Frankfurt, Paris, Milan, New York City, Beijing, Hong Kong and Zurich, all intending to provide superior investment returns to their clients.

Private Equity Market Companies

Major players operating in the private equity industry are: 

• Advent
• Apollo Global Management
• Bain Capital
• Blackstone
• Carlyle
• CVC Capital
• EQT
• KKR
• TPG
• Warburg Pincus

• The private equity marketplace is very competitive with a moderate level of consolidation among the leading firms that compete on the basis of having different or expansive methods for generating positive investment return from their assets. For example, all of the top VC firms are actively developing large portfolios of acquisitions in growth equity, buyouts, venture capital, infrastructure, private credit, healthcare technology, financial services, and infrastructure sectors. To expand their reach as a firm, each leading firm continues to build their firm’s exposure by making strategic acquisitions, forming co-investments and executing cross-border transactions. Now that more firms are applying AI (artificial intelligence) in making investment decisions, have begun digital transformation of their investment processes, and developing an ESG (Environmental, Social & Governance) doctrine to guide how they will invest, it creates new competitive dynamics.
• In addition, competition is shifting to largely differentiate between how effectively firms create value, optimize portfolios, have subject matter knowledge regarding sector-specific investing, and how well they are able to provide exclusive or unique offerings to investors. The growing number of firms currently employing artificial intelligence, advanced data analytics, digital operational techniques and sustainable investments is expected to enhance the effectiveness of the firm's due diligence, performance, and exit of tenant properties and increase how their properties value will appreciate or depreciate from an investment perspective. The increasing popularity of continuation funds, secondary investment transactions, retail private equity products and private credit strategies are also expected to provide for additional competition throughout the global private equity industry, while the overall size and duration of institutional investor allocations and investments made in emerging markets will provide for additional long-term growth potential within the private equity marketplace.

Private Equity Industry News

• In January 2025, Blackstone and Vista Equity Partners completed their acquisition (not to be confused with the original sale) of Smartsheet which is an AI enabled enterprise work management platform. This deal demonstrates the continued focus of private equity firms on enterprise software, artificial intelligence and digital transformation investments.
• In April 2025, KKR is going to buy OSTTRA the post-trade services joint-venture of S&P Global and CME Group, which they have signed off on for around USD 3.1 trillion. This is a way for KKR to enhance their share of the financial infrastructure market and continues private equity's focus on high-quality financial technology assets.
• In May 2025, Apollo Global Management announced that they will be purchasing a majority interest in Noble Environmental, Inc. This transaction allows them to expand their presence within environmental services as well as sustainable infrastructure, which falls within Apollo’s overall strategy of increasing their exposure amongst infrastructure and businesses focusing on ESG.
• In July 2025, KKR entered into an agreement to acquire Spectris plc for USD 6.5 trillion. Spectris plc manufactures precision instrumentation used throughout various industries. With this purchase, KKR will further expand their industrial technology portfolio and maintain its current interest level in advanced manufacturing/high-value engineering assets.

The private equity market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Trillion) from 2022 to 2035, for the following segments:

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Market, By Fund

• Buyout
  • Leveraged buyouts (LBO)
  • Management buyouts (MBO)
  • Public-to-private (take-private) transactions
  • Carve-outs & corporate divestitures
• Venture capital
  • Seed & pre-seed stage
  • Early stage (Series A & B)
  • Late stage (Series C & beyond)
• Growth equity
  • Minority growth investments
  • Majority growth investments
• Distressed / special situations

Market, By Sector

• Technology & software
• Healthcare & life sciences
• Financial services
• Industrials & manufacturing
• Energy & infrastructure
• Consumer goods & retail
• Real estate (REPE)
• Others

Market, By Investor

• Pension funds
  • Public pension funds
  • Private / corporate pension funds
• Insurance companies
  • Life insurance companies
  • Non-life / P&C insurance companies
• Sovereign wealth funds (SWFS)
  • Commodity-based SWFS
  • Non-commodity / fiscal stabilization SWFS
• Endowments & foundations
  • University & academic endowments
  • Charitable & philanthropic foundations
• Family offices & HNWIs
  • Single-family offices
  • Multi-family offices & HNWI platform
• Fund of funds
  • Primary fund of funds
  • Secondary fund of funds
• Others

Market, By Deal Size

• Mega cap (EV > $5B)
• Large cap (EV $1B–$5B)
• Mid-market (EV $250M–$1B)
• Lower mid-market (EV $50M–$250M)
• Small cap (EV < $50M)

The above information is provided for the following regions and countries: 

• North America 

• U.S. 

• Canada 

• Europe 

• Germany
• UK
• France
• Italy
• Spain
• Sweden
• Switzerland
• Netherlands

• Asia Pacific 

• China
• India
• Japan
• South Korea
• Australia
• Singapore
• Malaysia

• Latin America 

• Brazil
• Mexico
• Argentina

• MEA 

• South Africa 

• Saudi Arabia 

• UAE