Alt Asset 3 - Private Equity

What is Private Equity?

Private equity involves investment partnerships that buy, manage, and eventually sell companies for profit. Private equity firms run these investment funds on behalf of institutional and accredited investors. The industry has grown quickly due to increased interest in alternative investments and strong returns from private equity funds since 2000.

Private equity firms raise money from clients to start private equity funds. They operate these funds as general partners, managing the investments and earning fees along with a share of the profits.

Market Size of Private Equity Market

Source: https://www.precedenceresearch.com/private-equity-market#:~:text=Table%20of%20Content-,Private%20Equity%20Market%20Size%20and%20Forecast,9.72%25%20from%202024%20to%202033.

The chart illustrates the projected growth of the global private equity market from 2023 to 2033. Starting at $492.82 billion in 2023, the market is expected to expand steadily, reaching $1,246.08 billion by 2033. This growth represents a compound annual growth rate (CAGR) of 9.72% from 2024 to 2033. The rising start-up culture and increasing investments in emerging businesses are key factors driving this expansion, making private equity an increasingly attractive asset class over the next decade.