Private Equity Market Size, Share & Industry Analysis, By Type (Leveraged Buyouts (LBOs), Venture Capital, Real Estate Private Equity, Distressed and Special Situations, and Others), By Industry (Technology, Healthcare, Consumer & Retail, Financial Services, and Others), and Regional Forecast, 2026 – 2034

The global private equity market size was valued at USD 6,749.85 billion in 2025. The market is projected to grow from USD 7,499.57 billion in 2026 to USD 20,242.70 billion by 2034, exhibiting a CAGR of 13.2% during the forecast period.

The private equity (PE) industry is witnessing steady growth, supported by a growing supply of private capital seeking higher returns than public markets. Institutional investors such as pension funds, sovereign wealth funds, and insurers have continued to increase allocations to private assets to meet long-term return targets. This sustained capital inflow expands the ability of PE firms to fund buyouts, growth investment strategies, and sector roll-ups across industries. At the same time, it supports more specialized strategies such as secondaries and private credit-linked deals, broadening overall market activity.

• For instance, in 2025, A survey of insurance CIOs (conducted by Goldman Sachs) found that about 62% of insurers plan to increase private markets allocations.

Furthermore, several industry players such as Blackstone, KKR & Co., Apollo Global Management, The Carlyle Group, and TPG are focusing on scaling diversified private markets platforms and expanding investment into high-growth, resilient sectors such as technology, healthcare, infrastructure, and private credit-linked opportunities. These firms are also strengthening value creation capabilities by building in-house operating teams, digital transformation units, and sector-specialist groups to improve portfolio performance.

PRIVATE EQUITY MARKET TRENDS

Increasing Convergence of Private Equity and Private Credit is a Prominent Trend Observed in Market

The convergence of private equity and private credit is becoming a prominent market trend as PE sponsors increasingly rely on non-bank lenders to finance acquisitions, refinancings, and add-on deals. Private credit has expanded beyond mid-market direct lending into large-cap LBO financing and refinancing of syndicated loans, intensifying competition with public markets and reshaping deal structures. At the same time, sponsors and lenders are building custom capital stacks (unitranche, PIK notes, holdco debt) to support longer hold periods and delayed exits. This overlap is also driving growth in credit secondaries and continuation-style solutions, enabling liquidity for LPs and portfolio management for GPs in a slower exit environment.

• For instance, in February 2025, according to the Proskauer survey, 91% of respondents expect deal activity to increase over the next 12 months, reflecting strong momentum for direct lending and sponsor-backed financing, including acquisition and refinancing activity. This supports the point that PE sponsors are increasingly relying on private credit as deal-making expands.

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MARKET DYNAMICS

MARKET DRIVERS

Growth of Secondaries and Continuation Funds Improving Liquidity and Propelling Adoption for Private Equity

In a slower exit environment, many LPs seek liquidity to rebalance portfolios, manage over-allocations, or meet cash flow needs, and the secondary market provides a direct pathway to achieve this. Continuation funds, typically GP-led transactions, allow a sponsor to transfer a high-performing asset from an older fund into a new vehicle, enabling existing investors to either cash out or roll over their stake. This mechanism supports longer value creation timelines, especially for assets that still have growth runways but are not ideal to exit immediately. Overall, the expansion of secondaries and continuation funds strengthens the private equity ecosystem by easing liquidity constraints, improving capital recycling, and supporting continued fundraising momentum.

• For instance, in January 2025, Jefferies’ Global Secondary Market Review stated that global secondary volume surged to a record high in 2024, driven by a strong desire from both LPs and GPs to generate liquidity and accelerate distributions, alongside improving secondary pricing and high levels of dedicated capital.

MARKET RESTRAINTS

Valuation Gaps between Buyers and Sellers Restricting Market Growth

Valuation gaps between buyers and sellers are restricting the private equity market growth as many sellers continue to anchor expectations to the higher multiples seen during the low-interest-rate period, while buyers are underwriting deals using today’s higher cost of capital and more conservative growth assumptions. This mismatch widens the bid-ask spread, causing more deal processes to stall or take longer to close.

As a result, PE firms become selective and focus on only the highest-quality assets or situations with clear operational upside. The valuation gap also limits exit activity, since sponsors may delay selling portfolio companies until pricing improves. Overall, persistent pricing friction reduces transaction volume, slows capital deployment, and delays liquidity for investors.

MARKET OPPORTUNITIES

Digitization and AI-Led Operational Transformation to Offer Market Growth Opportunities

PE firms are increasingly using AI and advanced analytics to improve core levers such as pricing, demand forecasting, procurement, and working capital management across portfolio companies. Automation and AI-driven workflows also reduce operating costs by improving productivity in back-office functions such as finance, HR, and customer support. In customer-facing areas, digital tools help enhance lead conversion, improve retention, and personalize offerings, which supports revenue growth and stronger margins. AI is also being applied in diligence and portfolio monitoring to identify risks earlier and speed up decision-making. For fragmented industries, digitization enables scalable integration of add-on acquisitions, improving consistency and synergies in roll-up strategies. Thus, the ability to drive measurable operational gains through digital and AI initiatives is becoming a key differentiator for PE funds, propelling new deal interest rates and creating major market opportunities.

Segmentation Analysis

By Type

Rising Need for Leveraged Buyouts that Support Structured Debt Financing Propelled Segmental Growth

Based on the type, the market is divided into leveraged buyouts (LBOs), venture capital, real estate private equity, distressed and special situations, and others.

Leveraged buyouts (LBOs) accounted for the largest private equity market share due to strong fit with mature, cash-generative businesses that can support structured debt financing and deliver predictable returns. LBOs remain the preferred strategy for many sponsors as they enable control ownership, allowing PE firms to implement operational improvements, cost optimization, and strategic add-on acquisitions more effectively. North America and Western Europe have a large pipeline of mid-market and carve-out opportunities that are well-suited to buyout models. Even when financing conditions tighten, buyouts continue to dominate as investors value their relatively stable cash flows and clear value creation levers compared to higher-risk early-stage strategies.

Venture capital is anticipated to rise with a CAGR of 16.9% over the forecast period, driven by the accelerating commercialization of AI, cloud software, and deep-tech innovations that are creating new high-growth startup categories.

By Industry

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Rising Clear Value Creation Levers by Technology Industry to Boost Segment Growth

Based on industry, the market is segmented into technology, healthcare, consumer & retail, financial services, and others.

In 2025, the technology dominated the global market.  Private equity firms continued to prioritize scalable, asset-light business models that deliver recurring revenues and strong margins, particularly in enterprise software, cybersecurity, and AI-enabled platforms. Technology deals also remained attractive due to clear value creation levers such as digital transformation, product expansion, and cross-border market penetration, which support faster growth and premium exit multiples.

• For instance, in January 2025, Blackstone and Vista Equity Partners completed the acquisition of Smartsheet, calling it an “AI-enhanced enterprise work management platform,” which highlights how large PE sponsors are prioritizing scalable software assets with recurring revenue models.

Healthcare is projected to grow at a CAGR of 17.0% over the forecast period due to rising demand for healthcare services from aging populations, increasing chronic disease burden, and sustained spending on specialized care and outpatient services.

Private Equity Market Regional Outlook

By geography, the market is categorized into Europe, North America, Asia Pacific, South America, and the Middle East & Africa.

North America

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North America held the dominant share in 2024, valued at USD 3,008.84 billion, and also maintained the leading share in 2025, with USD 3,260.08 billion. The North America market growth is driven by the region’s deep pool of institutional capital, including pension funds, insurers, and sovereign investors, which continues to support strong fundraising and deployment. A mature ecosystem of private equity firms, advisors, and financing partners also enables higher deal activity across buyouts, growth investments, and add-on acquisitions. In addition, a large base of mid-market companies and ongoing consolidation in sectors such as technology, healthcare, and business services provides a steady pipeline of attractive targets.

U.S Private Equity Market  

Based on North America’s strong contribution and the U.S. dominance within the region, the U.S. market can be analytically approximated at around USD 2,796.14 billion in 2025, accounting for roughly 41.0% of global Private Equity sales.

Europe

Europe is projected to record a growth rate of 12.5% in the coming years, which is the second highest among all regions, and reached a valuation of USD 1,628.83 billion by 2025. The European market growth is driven by a steady pipeline of mid-market businesses, particularly in countries such as the U.K., Germany, and France, where succession-led ownership transitions and consolidation opportunities remain strong. Increasing corporate carve-outs and divestitures across Europe are also creating attractive entry points for sponsors, supported by clear operational value creation levers.

U.K Private Equity Market 

The U.K. market in 2025 reached a valuation of around USD 429.63 billion, representing roughly 6.0% of global Private Equity revenues.

Germany Private Equity Market

Germany’s market reached a valuation of approximately USD 278.15 billion in 2025, equivalent to around 4.0% of global Private Equity sales.

Asia Pacific   

Asia Pacific reached a valuation of USD 1,285.72 billion in 2025 and secured the position of the third-largest region in the market. In the region, India and China have both reached a valuation of USD 351.99 billion and USD 302.64 billion, respectively, in 2025.

Japan Private Equity Market

The Japan market in 2025 reached a valuation of around USD 164.18 billion, accounting for roughly 2.0% of global private equity revenues. This growth is attributed to increasing corporate governance reforms and shareholder pressure that are encouraging companies to divest non-core assets and improve capital efficiency, creating more carve-out and turnaround opportunities for private equity. In addition, a large base of cash-rich but under-optimized mid-sized companies is supporting buyout activity, particularly where sponsors can drive operational modernization and digital transformation in Japan.

China Private Equity Market 

China’s market is projected to be one of the largest worldwide, with 2025 revenues reaching a valuation of USD 302.64 billion, representing roughly 4% of global Private Equity sales.

India Private Equity Market

The India market in 2025 reached a valuation of USD 351.99 billion, accounting for roughly 5% of global Private Equity revenues.

South America and Middle East & Africa

The South America and Middle East & Africa regions are expected to witness moderate growth in this market space during the forecast period. The South America market reached a valuation of USD 219.48 billion in 2025. owing to rising investor interest in diversification and the gradual expansion of local private capital ecosystems, supported by sovereign-backed funding and regional institutional participation. In South America, opportunities are expanding in consumer services, agribusiness, fintech, and energy transition themes, supported by under-penetrated private equity markets and consolidation potential. In the Middle East, economic diversification programs and increasing investment into infrastructure, logistics, healthcare, and technology are creating attractive deal pipelines for private equity. In the Middle East & Africa, the GCC reached a valuation of USD 157.81 billion in 2025.

COMPETITIVE LANDSCAPE

Key Industry Players

Focus on Geographic Expansion and Cross-Border Sourcing by Key Players to Propel Market Progress

Key private equity players are increasingly focusing on geographic expansion and cross-border sourcing to access larger deal pipelines and reduce dependence on any single market cycle. By establishing regional offices and local investment teams, they can identify more attractive mid-market targets earlier and build stronger networks with founders, corporates, and advisors. Cross-border acquisitions also enable sponsors to scale their portfolio companies into new geographies, diversify revenue streams, and enhance resilience against local economic slowdowns. In addition, global sourcing enables firms to invest in high-growth sectors such as technology, healthcare, and infrastructure across multiple regions, thereby improving return potential. Overall, this expansion strategy increases deployment opportunities and accelerates market progress by enabling broader capital allocation and faster portfolio scaling.

LIST OF KEY PRIVATE EQUITY COMPANIES PROFILED

• Blackstone (U.S.)
• KKR & Co. (U.S.)
• Apollo Global Management (U.S.)
• The Carlyle Group (U.S.)
• TPG (U.S.)
• Bain Capital (U.S.)
• Warburg Pincus (U.S.)
• Thoma Bravo (U.S.)
• Vista Equity Partner (U.S.)
• EQT (Sweden)
• CVC Capital Partners (Luxembourg)
• Advent International (U.S.)
• Permira (U.K.)
• Ardian (France)
• Hellman & Friedman (U.S.)

KEY INDUSTRY DEVELOPMENTS

• November 2025: Tata Consultancy Services (TCS) announced a strategic partnership with TPG, a global alternative asset management firm, to support the growth of its AI data center business, HyperVault. TCS’s HyperVault will be funded through a mix of equity from TCS and TPG, and debt.
• September 2025: Goldman Sachs and T. Rowe Price announced a strategic collaboration aimed at delivering a range of diversified public and private market solutions designed for the unique needs of retirement and wealth investors.
• August 2025: Achmea Investment Management introduced a new investment fund under the name Achmea IM PE Partnership Fund – Healthy People & Planet 2025. The fund offers Dutch pension funds and other institutional investors cost-efficient access to private equity investments that work for healthy people in a healthy society.
• August 2025: Blackstone entered into a definitive agreement to acquire Enverus, a premier data analytics energy intelligence platform, from Hellman & Friedman and Genstar Capital. With this acquisition, Blackstone’s private equity strategy for individual investors is expected to invest in Enverus.
• May 2024: Capital Group and KKR today announced a strategic partnership to bring new ways for investors to incorporate alternative investments into their portfolios. Capital Group and KKR intend to make hybrid public-private markets investment solutions available to investors across multiple asset classes, geographies, and channels.

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