Report ID: SQMIG15A2551
Report ID: SQMIG15A2551
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Report ID:
SQMIG15A2551 |
Region:
Global |
Published Date: June, 2025
Pages:
192
|Tables:
98
|Figures:
71
Global Private Equity Market size was valued at USD 6.23 Billion in 2024 and is poised to grow from USD 6.92 Billion in 2025 to USD 16.19 Billion by 2033, growing at a CAGR of 11.2% during the forecast period (2026–2033).
Technological innovation is a major catalyst driving the growth of the global private equity market. The rapid advancement of sectors like artificial intelligence, fintech, biotech, and clean energy has created new business models with massive growth potential. These emerging industries often require substantial capital to scale quickly, presenting ideal opportunities for private equity firms to invest early and gain outsized returns. As demand for digital transformation increases across industries, companies in these spaces become high-value targets. This, in turn, fuels a competitive environment among private equity players, leading to more funding rounds, elevated valuations, and a heightened pace of acquisitions and exits.
The sustained low-interest rate environment, especially following global economic stimulus measures, has been a key factor fueling the expansion of the private equity market. With yields from traditional investments like government bonds and savings accounts remaining unattractive, investors—including pension funds, insurance companies, and sovereign wealth funds—are shifting capital into private equity in search of higher returns. This shift in investment behavior causes increased capital inflows into PE funds, enabling firms to raise larger funds and pursue more ambitious buyouts. The abundance of cheap debt also lowers financing costs for leveraged buyouts, further amplifying deal activity and contributing to the market’s robust growth trajectory.
How does AI-Driven Analytics Help in Evaluating Investment Opportunities?
Artificial Intelligence (AI) is reshaping the global private equity market by enhancing decision-making and uncovering high-potential investment opportunities. AI-driven analytics allow firms to evaluate vast datasets—from financial records to consumer behavior—more accurately and efficiently, improving due diligence and risk assessment. This leads to smarter investment choices and quicker deal execution. Indirectly, AI accelerates growth in tech-based portfolio companies, boosting returns. A notable development is Blackstone’s use of AI tools to optimize portfolio operations and identify market trends, signaling a broader shift toward tech-driven investment strategies. As a result, AI adoption is becoming a competitive differentiator in private equity performance and deal sourcing.
In April 2025, venture capital firm Andreessen Horowitz (a16z) initiated efforts to raise a record-setting $20 billion fund focused on growth-stage artificial intelligence (AI) investments in U.S. companies. This move aims to capitalize on strong global investor demand for American AI startups, especially amid growing geopolitical interest in U.S. tech industries.
How are Startups Disrupting Traditional Private Equity Investment Barriers?
The global private equity startup ecosystem has evolved rapidly in the past decade, driven by digital transformation and democratization of investment access. Startups are leveraging AI, fintech platforms, and operational tech to disrupt traditional investment barriers. These ventures attract substantial private equity funding by delivering scalable, tech-forward solutions in finance, logistics, and consumer services. As innovation intensifies, these startups shape new deal flows, valuation strategies, and competitive investment landscapes.
Founded in 2015, Yieldstreet is a New York-based fintech startup revolutionizing access to alternative investments. Its standout product, the Alternative Income Fund, allows individuals to invest across diversified assets like art, litigation finance, and real estate. The platform’s innovation lies in its use of AI-driven risk models and a seamless digital interface. Yieldstreet’s acquisition of Cadre expanded its offerings, making it a top pick for private equity investors seeking scalable financial democratization.
Established in the year 2018, in Dubai, Kitopi is a cloud kitchen startup enabling restaurants to scale delivery operations without physical expansions. Its Smart Kitchen Operating System (SKOS) automates everything from inventory to customer order flow. This tech-led model significantly reduces overhead and speeds up market entry. Kitopi’s innovation and scalability have attracted major private equity backing, proving how foodtech and operational intelligence are becoming lucrative targets in the modern investment landscape.
Market snapshot - 2026-2033
Global Market Size
USD 5.6 billion
Largest Segment
Venture Capital
Fastest Growth
Buyout
Growth Rate
11.2% CAGR
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Global Private Equity Market is segmented by Type, Industry and region. Based on Type, the market is segmented into Venture Capital, Buyouts & Acquisitions, Growth Capital, Mezzanine Financing and Distressed Investments. Based on Industry, the market is segmented into Technology, Healthcare, Financial Services, Consumer Goods, Industrial & Manufacturing and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Venture capital (VC) funds are currently dominating the global private equity market due to their focus on high-growth startups, especially in tech, biotech, and AI sectors. Innovations in digital platforms, automation, and data analytics have fueled investor confidence, accelerating VC deal flows. The fund type’s agile structure and higher risk appetite allow early-stage funding in disruptive ventures, positioning VC as the preferred vehicle for capturing outsized returns in emerging innovation-driven markets.
Buyout funds are poised to be the fastest-growing segment in the global private equity market due to rising opportunities in undervalued or distressed assets. As economic uncertainties prompt corporate restructuring, investors seek control and long-term value creation through operational improvements, making buyouts an attractive strategy for stable, risk-adjusted returns in mature sectors.
The financial services sector dominates the global private equity market due to its adaptability, consistent demand, and tech-driven transformation. Innovations like digital banking, blockchain, and AI-based credit systems attract substantial private equity investment. These technologies enhance efficiency, reduce risk, and improve customer experience. With growing fintech startups and digital platforms reshaping traditional financial models, private equity firms see the sector as a reliable, scalable, and high-return avenue for strategic long-term investment.
The technology sector is set to be the fastest-growing in the global private equity market due to surging demand for digital transformation, AI integration, and cloud-based solutions. As businesses prioritize innovation and automation, private equity firms increasingly target tech startups and scale-ups for high-growth potential, scalable models, and resilient post-pandemic performance.
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As per the global private equity market analysis, North America remains the leading region in the industry, driven by a mature investment ecosystem, strong capital availability, and a high concentration of tech and healthcare startups. The U.S. dominates with robust deal activity, favorable regulatory frameworks, and innovation hubs like Silicon Valley. Institutional investors, pension funds, and sovereign wealth funds continue fueling growth, while evolving sectors such as fintech and AI attract significant private equity interest.
The United States is the powerhouse of North America private equity market, contributing the lion’s share of deal volume and capital deployment. Home to top-tier firms like Blackstone and KKR, the U.S. benefits from a dynamic startup ecosystem, deep capital pools, and investor-friendly regulations. Its dominance in technology, healthcare, and consumer sectors drives high-value transactions, while innovations in fintech and AI continue to attract global private equity interest and cross-border investment flows.
Canada plays a vital role in North America private equity market, marked by a stable economy, strong financial institutions, and active pension funds like CPP Investments. The country’s private equity focus spans energy, infrastructure, and technology sectors. A growing startup scene in cities like Toronto and Vancouver has fostered innovation-driven investments. Favorable trade ties, sound governance, and cross-border collaboration with U.S. firms further enhance Canada’s position as a strategic private equity destination.
Europe private equity market is experiencing steady growth, supported by a mature financial infrastructure, regulatory harmonization, and increasing investor interest in ESG-driven investments. Key markets like the UK, Germany, and France lead in deal activity, especially in technology, healthcare, and renewable energy. Post-Brexit adjustments and digital transformation initiatives have opened new opportunities, while pan-European funds and cross-border investments continue to strengthen the region’s private equity ecosystem and long-term market potential.
Germany contributes significantly to the Europe private equity market through its strong industrial base, robust Mittelstand (SMEs), and tech-driven innovation hubs like Berlin and Munich. The country’s emphasis on manufacturing, automation, and cleantech makes it attractive for buyouts and growth equity deals. Private equity firms are increasingly investing in German companies focused on digitalization and sustainability, while a stable economy and pro-business environment foster long-term investor confidence and cross-border deal participation.
Italy’s contribution to the Europe private equity market is growing, driven by mid-market buyouts, family business transitions, and industrial consolidation. Key sectors include fashion, food, manufacturing, and infrastructure. Private equity firms find opportunities in digital transformation and export-oriented SMEs. Milan serves as the country’s PE hub, with increasing cross-border interest. Ongoing economic reforms and EU recovery funding are enhancing deal flows, making Italy an appealing target for strategic long-term investments.
Asia Pacific private equity market is rapidly expanding, fueled by digital transformation, a booming middle class, and increasing startup activity across China, India, and Southeast Asia. Investors are targeting sectors like fintech, healthcare, and consumer tech. Regulatory reforms, growing cross-border deal activity, and sovereign wealth fund participation enhance market maturity. As innovation hubs rise in cities like Singapore and Bengaluru, Asia Pacific emerges as a dynamic frontier for global private equity investments.
Japan contributes to the Asia Pacific private equity market through its large corporate sector, aging population, and demand for business succession planning. Private equity firms focus on carve-outs from conglomerates, digital transformation, and healthcare innovation. Government-backed deregulation and pro-investment policies have improved deal flow. Tokyo’s financial maturity and investor base make it a prime destination for strategic and operational value-driven investments, especially in technology, industrials, and consumer goods.
Singapore serves as a gateway for private equity into Southeast Asia, offering a stable financial environment, favorable tax regime, and pro-business policies. It is home to numerous regional headquarters for global PE firms. Key sectors include fintech, logistics, and green energy. Government-backed initiatives like EnterpriseSG support startup growth, while Singapore’s wealth management infrastructure attracts capital inflows. The city-state’s strategic location and innovation-friendly ecosystem solidify its leadership in Asia-Pacific’s private equity landscape.
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Rising Technological Advancements
Increasing Institutional Investor Participation
High Valuation and Market Volatility
Limited Exit Opportunities
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The global private equity market is highly competitive, with major players like Blackstone Inc., KKR & Co. Inc., The Carlyle Group, and Apollo Global Management dominating the landscape. These firms leverage strategies such as sector-focused investments, digital transformation of portfolio companies, and ESG integration. For example, KKR emphasizes sustainable value creation, while Blackstone pursues opportunistic acquisitions across real estate and infrastructure, strengthening its global footprint and diversified asset management capabilities.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the global private equity industry stands at the intersection of innovation, capital abundance, and strategic transformation. Technological progress in AI, fintech, and clean energy is reshaping deal dynamics, while institutional capital and low interest rates fuel aggressive buyout activity. Startups are breaking traditional barriers, and AI-driven analytics are empowering firms to make data-informed decisions at unprecedented speed.
Meanwhile, evolving regional ecosystems—from North America’s tech dominance to Asia-Pacific’s regulatory reform—continue to attract cross-border investments. Despite headwinds like high valuations and exit constraints, the sector remains resilient, competitive, and future-ready. As ESG considerations rise and digital platforms mature, private equity is poised to drive economic innovation while delivering compelling returns in an increasingly interconnected global investment landscape.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 6.23 Billion |
| Market size value in 2033 | USD 16.19 Billion |
| Growth Rate | 11.2% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Private Equity Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Private Equity Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Private Equity Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Private Equity Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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