United States Private Equity Market Size

USA Private Equity Market Analysis

The United States Private Equity Market size is estimated at USD 460 billion in 2024, and is expected to reach USD 765 billion by 2029, growing at a CAGR of greater than 11% during the forecast period (2024-2029).

The United States Private Equity Market is one of the fastest growing Private Equity Industries as business entities are more preferring venture capital and buy-out funding products for their investments and funding of organizations. There has been 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 the 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 returns 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.

There has been a negative Impact of COVID-19 on Private Equity and other Financial Investments and Fund Raising Products in the United States. Earlier in the first quarter of 2020, 46 Private Equity Firms were shut down in the United States because of a slowdown in businesses thus, the decline in fundraising opportunities. Post-COVID the market has witnessed significant growth as people's interest towards investments grew.