Despite global economic challenges, the buyout industry not only weathered the storm but thrived, deploying a record $1.2 trillion in 2023 while amassing an unprecedented $2.1 trillion in dry powder, signaling a robust and adaptable market poised for continued expansion.
Key Takeaways
- In 2023, global private equity buyout deal value reached $1.2 trillion, marking a 15% increase from 2022 despite economic headwinds
- The buyout market's dry powder stood at $2.1 trillion as of mid-2023, representing 20% more than pre-pandemic levels
- North American buyout market grew by 12% YoY in AUM to $4.5 trillion in 2023
- Global buyout deal value in 2023 was $1.15 trillion across 12,500 deals
- North America dominated with 45% of global buyout deal value at $517 billion in 2023
- Europe buyout deals totaled €450 billion in value with 4,200 transactions in 2023
- Global PE buyout fundraising reached $769 billion in 2023 across 1,450 funds
- North America captured 60% of buyout fundraising at $461 billion in 2023
- Europe buyout funds raised €210 billion from 420 vehicles in 2023
- Global buyout net IRR averaged 15.2% for 2018-2023 vintages
- Buyout DPI reached 1.25x for funds closed 2019-2023
- Top quartile buyout funds delivered 22% net IRR through 2023
- Global buyout exits totaled $850 billion in value across 7,500 deals in 2023
- IPO exits for buyouts generated $250 billion in 2023, 29% of total value
- Trade sales dominated buyout exits at 55% volume, $420 billion value in 2023
The buyout industry grew robustly in 2023 despite economic challenges and high inflation.
Deal Volume & Value
1Global buyout deal value in 2023 was $1.15 trillion across 12,500 deals
Verified2North America dominated with 45% of global buyout deal value at $517 billion in 2023
Verified3Europe buyout deals totaled €450 billion in value with 4,200 transactions in 2023
Verified4Asia-Pacific buyout deal value hit $220 billion across 2,800 deals in 2023
Directional5Average buyout deal size globally was $92 million in 2023, up 5% YoY
Single source6US mega-deals (> $5bn) numbered 28 in 2023, totaling $350 billion
Verified7Tech sector buyouts: 1,200 deals worth $280 billion in 2023
Verified8Healthcare buyout deals: 950 transactions at $210 billion value in 2023
Verified9Industrial buyouts saw 1,500 deals totaling $190 billion in 2023
Directional10Financial services buyouts: 650 deals worth $140 billion in 2023
Single source11Q4 2023 buyout deal count rose 18% QoQ to 3,200 globally
Verified12Sponsor-to-sponsor deals accounted for 35% of buyout volume in 2023
Verified13Add-on deals represented 55% of total buyout transactions in 2023
Verified14Leveraged buyouts using >6x EBITDA averaged 2,100 deals in 2023
Directional15Cross-border buyouts numbered 1,800 at $320 billion value in 2023
Single source16UK buyout deals: 850 transactions worth £75 billion in 2023
Verified17German buyout deal value €85 billion across 550 deals in 2023
Verified18French buyouts: 420 deals totaling €65 billion in 2023
Verified19Indian buyout deals hit 180 at $25 billion value in FY2023
Directional20Australian buyouts: 220 deals worth AUD 18 billion in 2023
Single source21Brazilian buyout deal value $30 billion across 120 deals in 2023
Verified22Chinese buyout deals declined to 450 at $40 billion in 2023
Verified23Japanese buyouts: 300 deals totaling ¥4.5 trillion in 2023
Verified24Divestiture-driven buyouts: 900 deals in 2023
Directional25Public-to-private buyouts numbered 75 globally at $120 billion in 2023
Single source26Real estate adjacent buyouts: 400 deals worth $85 billion in 2023
Verified27Average holding period for buyouts shortened to 4.8 years in 2023 deals
VerifiedDeal Volume & Value Interpretation
Despite a staggering trillion-dollar frenzy of leveraged bets and sector-specific shopping sprees, the buyout game in 2023 revealed a stark, almost musical-chair simplicity: North America wrote the loudest checks, everyone else hummed along, and the real strategy was just buying from each other and adding on until the music—or the holding period—inevitably stopped.
Exits & Trends
1Global buyout exits totaled $850 billion in value across 7,500 deals in 2023
Verified2IPO exits for buyouts generated $250 billion in 2023, 29% of total value
Verified3Trade sales dominated buyout exits at 55% volume, $420 billion value in 2023
Verified4Secondary buyouts accounted for 25% of exit value at $190 billion in 2023
Directional5Average buyout exit multiple was 11.2x EBITDA in 2023
Single source6North America buyout exits $450 billion across 3,800 transactions 2023
Verified7Europe exits €280 billion from 2,500 deals in 2023
Verified8Asia buyout exits $110 billion in 2023, up 15% YoY
Verified9Tech buyout exits: $180 billion value in 2023
Directional10Healthcare exits generated $140 billion for buyout owners 2023
Single source11Hold periods at exit averaged 4.9 years for 2023 buyout realizations
Verified12Sponsor-to-sponsor exits rose to 1,900 deals in 2023
Verified13Public market conditions delayed 20% of planned buyout IPOs in 2023
Verified14Continuation vehicles used in 15% of buyout exits 2023
Directional15UK buyout exits £55 billion across 650 deals 2023
Single source16German exits €60 billion in 2023
Verified17French buyout exits €45 billion 2023
Verified18Indian buyout exits $18 billion in FY2023
Verified19Rise of GP-led secondaries trended up 40% in buyout exits 2023
Directional20ESG factors influenced 60% of buyout exit decisions in 2023
Single source21Dual-track exits (IPO + trade) used in 10% of large buyouts 2023
Verified22Exit multiples compressed 0.8x YoY to 11.2x in H2 2023
Verified23Carve-outs as exit strategy grew 25% in buyout volume 2023
Verified24AI integration trending in 35% of new buyout deals 2023
Directional25Sustainability focus in 70% of buyout investment theses 2023
Single source26Dry powder deployment rate fell to 8% quarterly in 2023
Verified27Club deals increased to 20% of mega-buyouts in 2023
Verified28Debt financing costs rose 200bps impacting 40% buyout structures 2023
VerifiedExits & Trends Interpretation
While trade sales quietly dominated with the reassuring heft of a 55% market share, the buyout industry in 2023 navigated a high-stakes maze of rising debt costs and compressed multiples by expertly playing a game of pass-the-parcel, cleverly leveraging secondary buyouts, continuation funds, and a 40% surge in GP-led deals to keep the $850 billion exit engine humming.
Fundraising
1Global PE buyout fundraising reached $769 billion in 2023 across 1,450 funds
Verified2North America captured 60% of buyout fundraising at $461 billion in 2023
Verified3Europe buyout funds raised €210 billion from 420 vehicles in 2023
Verified4Asia-Pacific buyout fundraising totaled $85 billion across 280 funds in 2023
Directional5Average buyout fund size grew to $650 million in 2023 final closes
Single source6Mega-funds (> $5bn) raised $320 billion from 45 funds in 2023
Verified7First-time buyout funds collected $28 billion from 150 vehicles in 2023
Verified8LP commitments to buyouts hit $900 billion in pledges during 2023
Verified9Pension funds allocated 12% of portfolios to buyouts, contributing $250 billion in 2023
Directional10Sovereign wealth funds invested $120 billion into buyout funds in 2023
Single source11Insurance companies boosted buyout allocations to $80 billion in 2023
Verified12Family offices committed $45 billion to buyouts in 2023, up 25% YoY
Verified13US public pensions raised $110 billion for buyouts in 2023
Verified14European pensions funded €55 billion in buyout commitments 2023
Directional15Middle East SWFs led with $65 billion in buyout fundraises 2023
Single source16Fundraising time for buyout funds averaged 22 months in 2023
Verified1775% of 2023 buyout fundraises were oversubscribed
Verified18Core-plus buyout strategies raised $50 billion in 2023
Verified19Secondaries buyout funds collected $75 billion in 2023
Directional20Co-investment buyout vehicles raised $40 billion alongside main funds 2023
Single source21India-focused buyout funds raised $12 billion in 2023
Verified22China buyout fundraising dropped to $15 billion across 90 funds 2023
Verified23UK buyout funds closed €25 billion in 2023
Verified24German buyout fundraising €18 billion from 35 funds 2023
Directional25French buyout funds raised €22 billion in 2023
Single source26Australian buyout fundraising AUD 8 billion in 2023
Verified27Brazilian buyout funds raised $6 billion in 2023
Verified28Japanese buyout funds closed ¥1.2 trillion in 2023
VerifiedFundraising Interpretation
The private equity machine, with its North American engine roaring and pension fund fuel pumping, vacuumed up nearly a trillion dollars in global commitments last year, proving that even in uncertain times, there's nothing quite like the allure of buying a company, fixing it up, and selling it for a pretty profit.
Market Size & Growth
1In 2023, global private equity buyout deal value reached $1.2 trillion, marking a 15% increase from 2022 despite economic headwinds
Verified2The buyout market's dry powder stood at $2.1 trillion as of mid-2023, representing 20% more than pre-pandemic levels
Verified3North American buyout market grew by 12% YoY in AUM to $4.5 trillion in 2023
Verified4European buyout AUM expanded to €2.8 trillion by end-2023, up 8% from prior year amid stabilizing rates
Directional5Asia-Pacific buyout market saw 18% AUM growth to $1.1 trillion in 2023, driven by tech sector investments
Single source6Buyout industry projected CAGR of 9.5% from 2024-2028, reaching $6.5 trillion in AUM globally
Verified7US buyout firms controlled 55% of global AUM at $3.2 trillion in 2023
Verified8Buyout dry powder in Europe hit €700 billion in 2023, a record high
Verified9Global buyout market resilience shown with 5% AUM growth in H1 2023 despite inflation
Directional10Latin America buyout AUM grew 22% to $250 billion in 2023, fueled by infrastructure deals
Single source11Middle East buyout market AUM doubled to $180 billion since 2020 by 2023
Verified12Buyout sector's global AUM hit $5.8 trillion in 2023, per Preqin data
Verified13Tech-focused buyouts contributed 25% to market growth in 2023
Verified14Healthcare buyout subsector AUM rose 14% to $900 billion globally in 2023
Directional15Consumer buyouts saw 10% AUM increase to $750 billion in 2023 amid e-commerce boom
Single source16Energy transition buyouts grew AUM by 30% to $400 billion in 2023
Verified17Buyout market in India expanded AUM 25% to $150 billion in FY2023
Verified18Australian buyout AUM reached AUD 120 billion in 2023, up 11%
Verified19Canadian buyout market AUM hit CAD 300 billion, growing 9% in 2023
Directional20UK buyout AUM stood at £650 billion in 2023, stable despite Brexit effects
Single source21German buyout market AUM grew to €450 billion in 2023, +7% YoY
Verified22French buyout AUM reached €350 billion in 2023, up 12%
Verified23Buyout industry global headcount exceeded 500,000 professionals in 2023
Verified24Number of active buyout firms worldwide hit 8,500 in 2023
Directional25Mega-buyout deals (>€5bn) represented 15% of total market value in 2023
Single source26Mid-market buyouts (sub-$1bn) accounted for 60% of deal count but 30% value in 2023
Verified27Small buyouts (<$100m) grew 20% in volume in 2023
Verified28Buyout AUM per firm averaged $680 million globally in 2023
Verified29Top 10 buyout firms held 25% of global AUM at $1.45 trillion in 2023
Directional30Buyout market penetration in GDP terms reached 8% in US, 5% in Europe by 2023
Single sourceMarket Size & Growth Interpretation
The global private equity buyout industry has clearly decided that economic headwinds are for mere mortals, as it amassed a staggering $2.1 trillion in dry powder and pushed its total assets under management to nearly $6 trillion in 2023, proving that for those with enough capital, turbulence is just another opportunity to shop.
Returns & Performance
1Global buyout net IRR averaged 15.2% for 2018-2023 vintages
Verified2Buyout DPI reached 1.25x for funds closed 2019-2023
Verified3Top quartile buyout funds delivered 22% net IRR through 2023
Verified4Median buyout MOIC was 1.8x for mature funds in 2023
Directional5North America buyout pools averaged 16.5% IRR 2015-2020 vintages to 2023
Single source6Europe buyout IRRs averaged 13.8% for 2018 vintage to end-2023
Verified7Asia buyout returns hit 18% IRR for top performers in 2023
Verified8Mega-buyout IRRs underperformed at 12.5% vs 16% mid-market in 2023 data
Verified9Tech buyout subsector IRR 20.1% through 2023
Directional10Healthcare buyouts averaged 17.2% net IRR to 2023
Single source11Industrial buyout MOIC 2.1x median in 2023 realizations
Verified12Buyout value creation from ops improvements: 45% of total returns in 2023
Verified13Multiple expansion contributed 35% to buyout IRRs in 2023
Verified14Leverage effect added 20% to returns for 2023 vintage analysis
Directional15Public market benchmark underperformed buyouts by 4.5% annually to 2023
Single source16Vintage year 2020 buyouts on track for 25% IRR as of 2023
Verified17Secondaries buyout returns averaged 18.5% IRR in 2023
Verified18Distressed buyouts delivered 22% IRR post-COVID to 2023
Verified19UK buyout IRR 14.2% median through 2023
Directional20German buyout returns 13.5% average to 2023
Single source21French buyout MOIC 1.9x median in 2023
Verified22Indian buyout IRR 21% for 2018-2023 vintages
Verified23Australian buyout returns 15.8% IRR to 2023
Verified24Brazilian buyout MOIC 2.3x top quartile 2023
Directional25Volatility in buyout returns dropped to 8% std dev in 2023
Single source26ESG-integrated buyouts outperformed by 2.5% IRR in 2023 data
Verified27GP-led secondaries yielded 19% IRR in 2023 realizations
VerifiedReturns & Performance Interpretation
While the industry loves to tout its 15.2% average, the real story is that top-quartile managers are quietly pocketing 22% by surgically improving operations for nearly half their returns, proving that in a world of financial engineering, actually fixing companies is still the most lucrative magic trick.
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