What is Private Equity?

Private equity involves investing directly into private companies or taking public companies private, with the aim of enhancing value over time before exiting through a sale or IPO.

It appeals to investors seeking long-term capital growth, access to high-potential businesses, and returns that often exceed those available in public markets.

Why Private Equity Appeals to Investors

Higher Return Potential
Private equity investments often aim for returns above those available in public markets by driving operational improvements, strategic growth, and value creation within portfolio companies.

Access to Private Market Opportunities
Investors gain exposure to companies that are not available on public exchanges—many of which are in high-growth or transition phases with significant upside.

Long-Term Capital Growth
Private equity is typically a long-horizon investment, ideal for building generational wealth and compounding capital away from short-term market noise.

Manager Expertise & Active Ownership
Private equity firms bring hands-on management, strategic input, and industry expertise to each investment, helping unlock value that passive investing cannot.

Diversification from Public Markets
Because private equity is not subject to daily trading or public pricing, it offers low correlation to public equities, reducing volatility at the portfolio level.

Private equity to reach $12tn by 2029

AUM figures exclude funds denominated in Yuan Renminbi. Values relate to end of year. To avoid double-counting, totals exclude secondaries and funds of funds

The global private equity market is poised for strong expansion, with projections estimating growth to $781.36 billion by 2029, at a compound annual growth rate (CAGR) of 10.1%.

This growth is being driven by a combination of macroeconomic shifts, investor appetite, and innovation across sectors.

Key Drivers of Growth

• Increased capital allocation toward digital health and tech startups

• Rising interest rates, creating opportunities for private financing

• Heightened competition from strategic corporate investors

• Growth in entrepreneurial activity and the startup ecosystem

• Expanding global appetite for long-term, private market exposure

Emerging Market Trends

• Increased investment in technology-focused opportunities

• Greater use of big data analytics to guide decision-making

• Integration of artificial intelligence (AI) and machine learning (ML) in due diligence and value creation

• Adoption of robotic process automation (RPA) to enhance operational efficiency across portfolio companies