Growth in Private Equity Market

Source: https://www.mckinsey.com/~/media/mckinsey/industries/private%20equity%20and%20principal%20investors/our%20insights/mckinseys%20private%20markets%20annual%20review/2022/mckinseys-private-markets-annual-review-private-markets-rally-to-new-heights-vf.pdf

The graph shows the rapid growth of private equity assets under management (AUM) across different regions from 2000 to the first half of 2021. North America leads the way with the highest AUM, followed by significant growth in Asia and Europe. Asia's growth highlights the increasing focus on private equity in the region, where capital is often directed toward early-stage ventures. Overall, private equity assets have seen strong growth globally, particularly in recent years.

Source: https://www.mckinsey.com/~/media/mckinsey/industries/private%20equity%20and%20principal%20investors/our%20insights/mckinseys%20private%20markets%20annual%20review/2022/mckinseys-private-markets-annual-review-private-markets-rally-to-new-heights-vf.pdf

The graph shows the growth of private equity assets under management (AUM) by different fund types globally from 2000 to the first half of 2021. It highlights that buyout funds continue to be the largest category, with steady growth over the years. Venture capital (VC) funds, however, experienced the fastest growth, driven by strong investor interest, while growth funds and other types of private equity funds also showed significant increases.

Source: https://www.partnersgroup.com/~/media/Files/P/Partnersgroup/Universal/news-and-views/solving-the-private-markets-allocation-gap-from-products-to-portfolio-construction.pdf

The image illustrates that private equity, with an annualized return of 14.3%, has outperformed global equities (represented by the MSCI World Index with an 8.1% return). This higher return underscores the potential benefits of investing in private equity compared to traditional public market investments.

Last updated