U.S. Private Equity Market Size & Share Analysis - Emerging Trends, Growth Opportunities, Competitive Landscape, and Forecasts (2025

Description

The U.S. private equity market was valued at USD 2,995 billion in 2024 and is projected to soar to USD 6,584.6 billion by 2032, reflecting a robust CAGR of 10.5% between 2025 and 2032. This expansion stems from the increasing investor appetite for resilient and flexible investment avenues during times of economic uncertainty. With long-term capital appreciation and improved risk mitigation, private equity continues to emerge as a preferred alternative to public markets.

One of the major drivers behind this growth is the evolving macroeconomic landscape, including persistent inflation and shifting interest rates, which are pushing investors to seek assets capable of preserving and growing value. Additionally, private equity has become a strategic tool for over 25 million privately held companies in the U.S., enabling access to capital and expertise while sidestepping the regulatory burden and cost of public listings. Institutional investors like pension funds, insurance companies, and university endowments are increasingly funneling funds into private equity, drawn by its long-term return potential and its integral role in diversified portfolios.

Key Insights

Buyout funds held the largest market share of 45% in 2024, leading the private equity space with 58 transactions worth USD 16.8 billion-a 39% increase from the prior year-due to their strategic approach in acquiring and enhancing established companies.

Private debt emerged as the fastest-growing category, driven by restricted bank lending and a rising preference for flexible, non-bank financing solutions, offering attractive yields to investors and tailored capital to businesses.

Technology was the top-performing sector with a 30% market share, fueled by the rapid integration of AI, machine learning, and big data analytics, alongside digital transformation trends accelerated during the pandemic.

Energy & power is the fastest-growing sector, expanding at a CAGR of 10.5%, bolstered by government-backed renewable initiatives and surging consumer demand for clean energy investments.

Large cap investments dominated the market with a 55% share in 2024, favored for their financial stability, predictable returns, and ability to undertake large-scale operations and acquisitions.

Lower middle market was the fastest-growing segment, where PE firms identified value-rich targets with EBITDA and revenue growth rates up to 2.9 and 2.7 times higher than large-cap counterparts, respectively.

In regional analysis, the Northeast held the largest market share at 25% in 2024, led by New York's role as a global financial nucleus with abundant PE and VC activities and robust innovation support from top-tier academic institutions.

The West outpaced other regions in growth, supported by California's tech-driven economy and its high startup density. The region boasted over 263,000 private companies, with a venture capital penetration rate of nearly 7%.

The market remains highly fragmented, comprising thousands of firms across sizes. Giants like Blackstone, KKR, Carlyle, Apollo, and Bain Capital operate alongside a diverse array of niche and mid-market firms.

In a key transaction from March 2025, Sycamore Partners acquired Walgreens Boots Alliance for USD 24.7 billion, underscoring the strength of mega-deals in driving market consolidation.

Align Capital Partners introduced its "Align Collaborate" strategy in September 2023 to support independent sponsors and enhance access to equity capital in the lower-middle-market segment.

Product Code: 13659

Chapter 1. Research Scope

1.1. Research Objectives
1.2. Market Definition
1.3. Analysis Period
1.4. Market Size Breakdown by Segments
- 1.4.1. Market Size Breakdown, by Fund Type
- 1.4.2. Market Size Breakdown, by Sector
- 1.4.3. Market Size Breakdown, by Investments
1.5. Market Data Reporting Unit
- 1.5.1. Revenue
1.6. Key Stakeholders

Chapter 2. Research Methodology

2.1. Secondary Research
- 2.1.1. Paid
- 2.1.2. Unpaid
- 2.1.3. P&S Intelligence Database
2.2. Primary Research
2.3. Market Size Estimation
2.4. Data Triangulation
2.5. Currency Conversion Rates
2.6. Assumptions for the Study
2.7. Notes and Caveats

Chapter 3. Executive Summary

Chapter 4. Market Indicators

Chapter 5. Industry Outlook

5.1. Industry Background
5.2. Market Dynamics
- 5.2.1. Trends
- 5.2.2. Drivers
- 5.2.3. Restraints/Challenges
- 5.2.4. Emerging Economies and Key Opportunities
- 5.2.5. Impact Analysis of Drivers/Restraints
5.3. Impact of COVID-19
5.4. Sociopolitical Impact
5.5. Porter's Five Forces Analysis
- 5.5.1. Bargaining Power of Buyers
- 5.5.2. Bargaining Power of Suppliers
- 5.5.3. Threat of New Entrants
- 5.5.4. Intensity of Rivalry
- 5.5.5. Threat of Substitutes
5.6. Innovation and Technology Trends
5.7. Economic and Regulatory Impact
5.8. Market Entry Strategies

Chapter 6. Competitive Landscape

6.1. List of Market Players and their Offerings
6.2. Market Share of Key Players (2024)
6.3. Competitive Benchmarking of Key Players
6.4. Recent Strategic Developments by Key Players
6.5. Company Leadership Matrix

Chapter 7. U.S. Market

7.1. Overview
7.2. Market Revenue, by Fund Type (2019-2032)
7.3. Market Revenue, by Sector (2019-2032)
7.4. Market Revenue, by Investments (2019-2032)
7.5. Market Revenue, by Country (2019-2032)

Chapter 8. Northeast Market

8.1. Overview
8.2. Economic Indicators
8.3. Demographics and Population Insights
8.4. Regional Hotspots
8.5. Growth Drivers
8.6. Challenges and Barriers
8.7. Competitive Strategies
8.8. Emerging Players
8.9. Compliance Requirements
8.10. Emerging Investment Areas
8.11. Major Ongoing Projects
8.12. Market Size and Forecast
- 8.12.1. Market Revenue, by Fund Type (2019-2032)
- 8.12.2. Market Revenue, by Sector (2019-2032)
- 8.12.3. Market Revenue, by Investments (2019-2032)

Chapter 9. Midwest Market

9.1. Overview
9.2. Economic Indicators
9.3. Demographics and Population Insights
9.4. Regional Hotspots
9.5. Growth Drivers
9.6. Challenges and Barriers
9.7. Competitive Strategies
9.8. Emerging Players
9.9. Compliance Requirements
9.10. Emerging Investment Areas
9.11. Major Ongoing Projects
9.12. Market Size and Forecast
- 9.12.1. Market Revenue, by Fund Type (2019-2032)
- 9.12.2. Market Revenue, by Sector (2019-2032)
- 9.12.3. Market Revenue, by Investments (2019-2032)

Chapter 10. West Market

10.1. Overview
10.2. Economic Indicators
10.3. Demographics and Population Insights
10.4. Regional Hotspots
10.5. Growth Drivers
10.6. Challenges and Barriers
10.7. Competitive Strategies
10.8. Emerging Players
10.9. Compliance Requirements
10.10. Emerging Investment Areas
10.11. Major Ongoing Projects
10.12. Market Size and Forecast
- 10.12.1. Market Revenue, by Fund Type (2019-2032)
- 10.12.2. Market Revenue, by Sector (2019-2032)
- 10.12.3. Market Revenue, by Investments (2019-2032)

Chapter 11. South Market

11.1. Overview
11.2. Economic Indicators
11.3. Demographics and Population Insights
11.4. Regional Hotspots
11.5. Growth Drivers
11.6. Challenges and Barriers
11.7. Competitive Strategies
11.8. Emerging Players
11.9. Compliance Requirements
11.10. Emerging Investment Areas
11.11. Major Ongoing Projects
11.12. Market Size and Forecast
- 11.12.1. Market Revenue, by Fund Type (2019-2032)
- 11.12.2. Market Revenue, by Sector (2019-2032)
- 11.12.3. Market Revenue, by Investments (2019-2032)

Chapter 12. Company Profiles

Chapter 13. Appendix

13.1. Sources and References
13.2. Related Reports

U.S. Private Equity Market Size & Share Analysis - Emerging Trends, Growth Opportunities, Competitive Landscape, and Forecasts (2025 - 2032)