United States Private Equity Market - Growth, Trends, Covid-19 Impact and Forecasts (2022-2027)

The United States Private Equity Market is Segmented By Investment Type (Large Cap, Mid Cap and Small Cap) and By Application (Early Stage Venture Capitals, Private Equity and Leveraged Buyouts).

Market Snapshot

United States Private Equity Market Size
Study Period: 2018-2027
Base Year: 2021
CAGR: <13 %
United States Private Equity Market Key Players

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Market Overview

There has been negative Impact of COVID-19 on Private Equity and other Financial Investment and Fund Raising Products in United States. Earlier in first quarter of 2020, there were 46 Private Equity Firms which were shut in United States because of slowdown in businesses thus, decline in fund raising opportunities. November 2019 survey reporting that 91% of fund managers planned to deploy at least the same amount of capital in 2020. While traditional fundraising can be expected to be dampened throughout the rest of 2020 given the global economic uncertainty caused by COVID-19, such market stresses and opportunities may lead to further focus on sponsor-led restructurings and an increase in "top-up" vehicles to support existing portfolios and special opportunity vehicles to take advantage of new opportunities beyond historical investment objectives.

Sponsors continue to hold closings on existing funds in the market, but some sponsors indicated that they expect a longer fundraising period and a majority of sponsors launching new funds anticipate some amount of delay. At the same time, a vast majority of surveyed sponsors cited low asset valuations as a reason to expect greater deal activity, and nearly a third of sponsors planned to seek greater flexibility in their investment mandate from investors.

Private equity firms are benefiting from significant market tailwinds triggered by historically low interest rates as well as record fundraising, which is at an all-time high with US Private Equity dry powder. Additionally,it's being seen an increase in new funds being set up by experienced PE professionals from already established funds, resulting in high levels of deployable capital.

With competition for traditional PE deals increasing and putting pressure on returns, Private Equity firms in United States are evolving to be diversified alternative asset managers with holdings in a variety of asset classes. This dynamic is heating up now because of two major drivers. First, private equity managers can generate higher risk-adjusted returns on assets, helping insurers generate additional spread and higher return on equity. Second,  they increase AUM, generate additional fee income and provide a source of permanent capital through access to the insurance company’s balance sheet.

Scope of the Report

The United States Private Equity Market is one of the fastest growing Private Equity Industry as the businesses entities are more preferring the venture capital and buy-outs funding product for their investments and fundinmg of organisations. A complete background analysis of the U.S. Private Equity Market, which includes an assessment of the economy, market overview, market size estimation for key segments, and emerging trends in the market, market dynamics, and key company profiles are covered in the report. The United States Private Equity Market is Segmented By Investment Type (Large Cap, Mid Cap and Small Cap) and By Application (Early Stage Venture Capitals, Private Equity and Leveraged Buyouts).

By Investment Type (2018-2022)
Large Cap
Mid Cap
Small Cap
By Application (2018-2022)
Early Stage Venture Capitals
Private Equity
Leveraged Buyouts

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Key Market Trends

Lower Interest Rates and Tax Benefits Raising the Private Equity Adaption In United States

Private equity firms are benefiting from significant market tailwinds triggered by historically low interest rates as well as record fundraising, which is at an all-time high with US. The low interest rates in United States and abundant capital to continue to spur Private equity activity (lower debt financing costs) and tax law uncertainty to spur exit activity to accelerate timing and avoid potentially unfavorable tax outcomes in the forecast period. 

Private equity funds in the US (or offshore with a US fund sponsor) are typically treated as partnerships for US tax purposes, regardless of whether they are organised as limited partnerships or LLCs. The fund itself is then generally not taxed in the US, with the exception in certain instances of taxes resulting from partnership audits. Thus witnessing the growth in Businesses raising their Funds from Private Equity in United States and estimated growth for Private Equity throughout the forecast period is seen.

United States Private Equity Market Trends

Public Pension Plan Witnessing Maximum Capital Invested in Private Equity

Private Equity Market in United States raise thier funds through various corporate and soverign financial drivers. In 2019, The largest investors based on capital invested in Private Equity in United States were public pension plans followed by sovereign wealth funds followed by insurance companies followed by private sector pension funds.
Family offices, private sector pension funds and wealth managers have all seen proportional increases in investment mandates in Private Equity. By contrast, funds of funds have been less active in their searches for new managers in 2019 than in prior years.

United States Private Equity Market Growth

Competitive Landscape

TheUnited States Private Equity Market is highly competitive and fragmanted as the Private Equity business mechanism and growth-oriented approaches undertaken by the leading companies operating in this market. The report highlights the numerous strategic initiatives, such as new business deals and collaborations, mergers & acquisitions, joint ventures, product launches, and technological upgradation, implemented by the leading market contenders to set a firm foot in the market. Hence, this section is inclusive of the company profiles of the key players, and industry analysis.The common services offered by such private equity companies include venture capital, buyouts. United States Private Equity groups such as Chicago Capital Holdings, Blackstone group, TPG Capital and many more have been focusing on Private Equity categories of Venture Capitals and Buyouts which mainly includes raising funds, deal sourcing and investment in new assets, portfolio company performance improvement, exit planning and realisation, and audit, tax and regulatory advice and leading the United States Private Equity Market to the new heights.

Recent Developments

In July 2021, Sidley is representing Home Partners of America, Inc. (HPA) in its acquisition by Blackstone Real Estate Income Trust, Inc., an affiliate of The Blackstone Group Inc., in a transaction valued at USD 6.0 billion. HPA has a high-quality portfolio of over 17,000 homes across the United States. Its management team is committed to responsible ownership and seeks to provide potential residents flexibility, choice, and control when deciding where and how to live.

In July 2021, Vista Equity Partners (“Vista”), a leading global investment firm focused exclusively on enterprise software, data and technology-enabled businesses announced that it is expanding its senior team with the appointment of Managing Director, Corporate Growth Initiatives, effective August 2021.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXCEUTIVE SUMMARY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Market Overview

      1. 4.1.1 Private Equity- Insights on Typical Structures in United States and How it Works in United States

    2. 4.2 Insights on Private Equity Financing and Vertical Analysis in United States

      1. 4.2.1 Deal Size of Private Equity Financing by Series in United States

      2. 4.2.2 Insights of Major Deals Across Industries and Top 10 -20 Leading Private Equity Across Sectors

      3. 4.2.3 Key Trends in the Investment Patterns of United States Private Equity Firms in the Recent Times

      4. 4.2.4 Private Equity Funding on the Rise in Biotech/Pharma Sectors

      5. 4.2.5 Market Outlook on Current and Future Spending of Private Equity Firms

      6. 4.2.6 Insights on Blockchain-related Private Equity Financing

      7. 4.2.7 A Brief on Rising ESG Investing by Private Equity firms

    3. 4.3 A Brief On United States Private Equity Landscape

      1. 4.3.1 An Overview of United States Private Equity Industry (Number of VC firms, AUM, VC Fund Size, etc.)

      2. 4.3.2 Prominence of the United States Private Equity Proportionate to the Global Private Equity Industry Over the Years

      3. 4.3.3 Insights on Private Equity by Industry in United States

    4. 4.4 Insights on the Exit Landscape of United States Private Equity Worldwide

    5. 4.5 Regulatory Landscape Governing the United States Private Equity of Funds in Various Economies

    6. 4.6 Market Drivers

    7. 4.7 Market Restraints/ Challenges

    8. 4.8 Porters Five Forces Analysis

      1. 4.8.1 Threat of New Entrant

      2. 4.8.2 Bargaining Power of Buyer/ Consumer

      3. 4.8.3 Bargaining Power of Suppliers

      4. 4.8.4 Threat of Substitute Product

      5. 4.8.5 Intensity of Competitive Rivalry

    9. 4.9 Impact of Covid-19 on the market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Investment Type (2018-2022)

      1. 5.1.1 Large Cap

      2. 5.1.2 Mid Cap

      3. 5.1.3 Small Cap

    2. 5.2 By Application (2018-2022)

      1. 5.2.1 Early Stage Venture Capitals

      2. 5.2.2 Private Equity

      3. 5.2.3 Leveraged Buyouts

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Blackstone Group

      2. 6.2.2 Carlyle Group

      3. 6.2.3 KKR Company

      4. 6.2.4 TPG Capital

      5. 6.2.5 Warburg pincus LLC

      6. 6.2.6 Neuberger Berman group LLC

      7. 6.2.7 Acdvant International

      8. 6.2.8 Vista Equity Partners

      9. 6.2.9 Chicago Capital Holdings

      10. 6.2.10 Gottenberg associates LLC*

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. DISCLAIMER & ABOUT US

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Frequently Asked Questions

The United States Private Equity Market market is studied from 2018 - 2027.

The United States Private Equity Market is growing at a CAGR of <13% over the next 5 years.

Carlyle Group, Gottenberg Associates, Chicago Capital , Vista Equity Partners, Blackstone are the major companies operating in United States Private Equity Market.

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