How Big is Private Equity Market?
The private equity market is enormous and rapidly expanding. By late 2024, private equity and venture capital assets under management (AUM) reached about $11 trillion, while the broader private markets surpassed $17 trillion. Experts predict global private markets could soar to $60 to $65 trillion by 2032. This remarkable growth is fueled by over $4 trillion in committed, yet-to-be-invested capital (“dry powder”), rising demand from defined contribution plans, and regulatory changes that are unlocking new opportunities.
Understanding the Private Equity Market Size
The question “how big is the private equity market?” has become of increasing importance for decision makers, VCs, start-ups, and small and medium-sized businesses. The private equity industry size has witnessed remarkable expansion over recent years, establishing itself as a dominant force in global finance.
According to Nexus Expert Research, the private equity market covers a range of asset classes, including leveraged buyouts, growth equity, venture capital, and distressed investments. Different methodologies produce varying estimates: some reports valued the market at $4.74 trillion in 2021, while others estimated $9.7 trillion in 2022, highlighting the market’s rapid growth and the diversity of measurement approaches.
Comparing market sizes shows that private equity assets are growing much faster than public equities. When public companies have underperformed, the private market has stepped up, attracting capital from institutional investors, pension funds, and high-net-worth individuals.
Current Market Landscape and Key Metrics
Market Composition and Asset Distribution
| Market Segment | Estimated Value | Growth Trajectory |
| PE/VC Assets Under Management | $11 trillion (2024) | Projected $17 trillion by 2025 |
| Total Private Markets | $7+ trillion | Expanding faster than public markets |
| Dry Powder (Uncommitted Capital) | $4+ trillion | Awaiting deployment |
| North American Market Share | 53%+ | Supported by deep capital markets |
Geographic Distribution and Regional Dynamics
| Region | Market Characteristics | Key Drivers |
| North America | Dominant position (over 53%) | Deep capital markets, regulatory environment |
| Europe | Significant growth trajectory | Institutional investor appetite |
| Asia-Pacific | Emerging opportunities | Technology sector expansion |
| Rest of World | Developing markets | Infrastructure and growth capital needs |
Growth Forecast and Prospect
Short-Term Projections (2025-2026)
The global private equity market is expected to reach around $6 trillion in total assets by 2025. This growth is driven by several factors: institutions allocating more to alternative investments, regulatory changes enabling broader participation, and strong performance records attracting new capital.
Long-Term Forecast (Through 2030)
Forecasts suggest the market could reach $34 trillion by 2030, fueled by growing investor demand and the ongoing maturation of the industry. This expansion reflects a shift in capital allocation, as pension funds and endowments increase their investments in alternatives to boost returns and diversify portfolios.
Market Dynamics and Trends to Investing
Outpacing Public Markets
The rapid growth of private equity highlights a key trend: private equity assets are outpacing public equities. Investors are drawn to private equity for its potential to outperform public markets, create value through operational improvements, enable long-term strategic transformations, and reduce volatility. Massive reserves of “dry powder,” which is committed capital ready to be invested, signal strong investor confidence and ensure steady deal flow. According to Nexus Expert Research, this capital will drive acquisitions, growth investments, and sector consolidations.
Focus of the Sector & Investment Priorities
Health Care and Leadership of Biotechnology
Private equity investors are especially interested in healthcare and biotech, where innovation drives both valuations and lucrative exit opportunities. These industries attract significant private equity allocations because of:
- Demographic trends increasing healthcare demand
- Technological innovations creating investment opportunities
- Regulatory changes that facilitate product commercialization
- Defensive qualities during economic uncertainty
Technological Sector Superiority
Technology continues to attract a large share of private equity capital, especially in software, fintech, and digital infrastructure. The private equity market recognizes how transformative technology can be across all industries.
Appetite of Investor and the Market
Growth in Institutional Investing
Investor demand is especially strong from defined contribution plans (like 401(k)s), which are now a growing source of capital. Recent changes to U.S. retirement laws allow private equity investments in retirement plans, potentially unlocking massive new capital for the industry’s growth.
Evolving Investor Base
The question of “how big is the private equity market?” now reflects a broader participant base beyond traditional institutional investors. Family offices, sovereign wealth funds, and individual accredited investors are gaining access through various channels, expanding the market’s depth.
Challenges and Considerations of the Market
Despite robust growth, the private equity market faces several challenges, including:
- Interest rate changes that affect borrowing costs and valuations
- Market conditions that impact exit timing and distributions
- Regulatory reviews of fee structures and transparency
- Rising competition for quality assets, which drives up valuations
Yet, the market has shown resilience. Firms are adapting and creating specialized strategies to navigate these evolving dynamics effectively.
Concluding: Why the Transformational Financial Ecosystem
Private equity is a massive and evolving financial ecosystem, outpacing the growth rates of traditional public markets. Global private markets are projected to reach $60 to $65 trillion by 2032.
Understanding the scope of the private equity market gives decision-makers, VCs, startups, and businesses vital context for strategic planning and raising capital. North America leads the market, especially in healthcare and technology, and its strong position in dry powder is fueling exponential growth despite ongoing challenges.
Ready To Move Up The Private Equity Hill?
Contact with Nexus Expert Research for comprehensive private equity market intelligence, deal sourcing, and strategic advisory services. Let our experts help your organization succeed in this dynamic $11 trillion ecosystem. Connect with us today and turn market opportunities into results.
