US Private Equity Market Size Likely to Grow at a CAGR of 8.54% By 2034

The US Private Equity Market size is forecast to grow at a CAGR of 8.54% from 2025 to 2034. The market is expected to reach USD 1,874 Billion by 2034, up from USD 828 Billion in 2025.

Overview

An industry expert from XX predicted continued growth in the US private equity market due to both a growing pool of institutional capital and technology advancements, as well as a growing pool of investors. The increasing use of digital tools combined with data-driven deal sourcing and new regulatory frameworks will continue to increase efficiency in the market. Continued partnerships and formalization of sectors create large opportunities to attract both international and local players, supported by government policies and continued development of market infrastructure.

Key Trends & Drivers

• Increased Institutional Capital: Institutional investors are making larger commitments to private equity, which leads to more potential dry powder available to firms. This makes it easier for firms to increase their competition for larger deal sizes and to create larger pools of capital, which supports continual growth in the market and hosts more activity.

• Technology: The advent of new technologies and approaches leads to better deal sourcing and due diligence, and helps firms better manage their portfolios more efficiently. More transparent sourcing and better decision making mean private equity firms can find high-quality investment opportunities quicker, and can lead to better operational improvements in their portfolios.

• Regulatory: The recent relaxation of SEC rules widened the definitions of who is an accredited investor to more individuals and entities that can now invest in private equity funds. A larger investor pool will help with capital-raising, which means more potential capital is available in the market, and overall, it supports growth.

• Generational Business Transition: Many mid-market, family-owned businesses are changing hands with the founder’s retirement. This means there are opportunities for private equity firms to purchase established companies with fully operational companies, improve efficiency, and intend to grow during the transitions of ownership.

• Energy Transition: There is an increased focus on private equity to deploy capital in infrastructure and renewable energy to continue with their ESG initiatives. This focus also addresses demand for clean energy as it emerges, which creates a variety of new opportunities for growth and long-term value.

Report Scope

SWOT Analysis

• Strengths: The US Private Equity market is positively impacted by large amounts of institutional capital, providing ample dry powder to invest in opportunities. Developing technologies, including AI, have streamlined the deal-sourcing process and helped manage the portfolio. A mature regulatory system continues to protect investors, as well as the years of experience and improvement provided by managers and firms which have strongly added value and contributed to future expectations of continued value-growth in the space.

• Weaknesses: The US Market has a high level of competition generating high prices for assets, reducing potential opportunity returns. Regulatory compliance is complex and can be a cost driver, creating extra operational overhead. Lack of deal transparency can limit smaller investors from participating in deals. Fundraising and exits depend on both economic cycles; both factors that can cause the private equity market to stall during downturns.

• Opportunities: With SEC rule changes, the base of accredited investors is expanding quickly, which adds more opportunities to fund educational programs. With increasing activity within the tech sector, renewable energy, and healthcare, there are now many new opportunities to invest in. The process of digitization is allowing for a vast deal flow as well as increasing the potential value of the portfolio under management. Practically, the succession of family-owned businesses places a remarkable buyout target to continue with private equity. Socially, demand for ESG investments is a great growth area.

• Threats: Interest rates are increasing, making new borrowings more costly, which diminishes investment opportunities, particularly for leveraged deals. Increasing regulation and scrutiny mean new rules will continue to add compliance costs and transparency expectations, which makes the current market outlook challenging. Many of the outside factors driving a decrease in valuation opportunities may also halt would-be deals from transpiring, therefore diminishing any new deal activity. There is are increasing amount of competition for capital from alternative vehicles such as SPACs or other investment vehicles for private equity, which can potentially deter investment into traditional private equity investments.

List of the prominent players in the US Private Equity Market:

• Blackstone Inc.
• Kohlberg Kravis Roberts & Co. L.P. (KKR)
• Apollo Global Management Inc.
• The Carlyle Group Inc.
• TPG Inc.
• Bain Capital LP
• Vista Equity Partners
• Thoma Bravo LP
• Silver Lake Partners
• Warburg Pincus LLC
• Advent International Corp.
• Clayton Dubilier & Rice LLC
• Hellman & Friedman LLC
• Leonard Green & Partners L.P.
• Oak Hill Capital Partners
• Ares Management Corporation
• Brookfield Asset Management Ltd.
• GTCR LLC
• Madison Dearborn Partners
• Providence Equity Partners
• Others

The US Private Equity Market is segmented as follows:

By Fund Type

• Buyout Funds
• Growth Equity Funds
• Venture Capital Funds
• Mezzanine & Preferred Equity Funds
• Distressed/Turnaround Funds
• Infrastructure & Energy Transition Funds

By Sector Focus

• Technology & Software
• Healthcare & Life Sciences
• Consumer & Retail
• Industrial & Manufacturing
• Financial Services & FinTech
• Energy, Power & Utilities

By Deal Size

• Small-Cap (< USD 100M EV)
• Mid-Cap (USD 100M – USD 1B EV)
• Large-Cap (USD 1B – USD 5B EV)
• Mega-Deals (> USD 5B EV)

By Investor Type

• Pension Funds
• Insurance Companies
• Endowments & Foundations
• Funds of Funds
• Family Offices & HNWIs
• Corporate/Strategic LPs

By Exit Strategy

• Trade Sale
• IPO / SPAC Merger
• Secondary Buy-out
• Dividend Recapitalization
• Asset Sale / Part-Out