While global private equity fundraising still reached a staggering $1.17 trillion in 2023, a closer look reveals an industry in a moment of profound recalibration, where dry powder hit a record $2.6 trillion even as mega-funds captured nearly half of all capital and the average time to close a fund stretched to 21 months.
Key Takeaways
- Global private equity fundraising totaled $1.17 trillion in 2023, the second-highest year on record despite a 24% decline from the 2022 peak.
- North American PE funds raised $486 billion in 2023, accounting for 42% of global totals.
- The number of PE funds closed in 2023 dropped to 1,987, down 31% from 2022.
- Global PE dry powder hit $2.6 trillion by Q1 2024, up 5% QoQ.
- PE deal value reached $743 billion in 2023, down 21% from 2022.
- Number of PE deals globally was 14,800 in 2023, flat YoY.
- Global PE exit value was $486 billion in 2023, down 28% YoY.
- Number of PE exits dropped to 7,400 in 2023 from 9,800 in 2022.
- IPO exits for PE fell to 180 in 2023, raising $42 billion.
- Global PE net IRR for 2023 vintages averaged 15.2%.
- Buyout funds delivered median TVPI of 1.75x as of 2023.
- Top quartile PE funds achieved 22% net IRR through 2023.
- Global PE AUM grew to $5.8 trillion by end-2023.
- Dry powder represented 44% of total PE AUM in 2023.
- Number of PE firms worldwide reached 12,500 in 2023.
Private equity fundraising remains strong but slowed significantly in a tougher 2023 market.
AUM and Trends
1Global PE AUM grew to $5.8 trillion by end-2023.
Verified2Dry powder represented 44% of total PE AUM in 2023.
Verified3Number of PE firms worldwide reached 12,500 in 2023.
Verified4Fee income for PE managers totaled $145 billion in 2023.
Directional5LP commitments to PE hit $1.4 trillion over 2019-2023.
Single source6Concentration: Top 20 managers controlled 30% of AUM in 2023.
Verified7ESG-integrated PE AUM grew 15% to $1.2 trillion in 2023.
Verified8Digital infrastructure AUM in PE doubled to $250B by 2023.
Verified9Sovereign wealth funds held 25% of global PE AUM in 2023.
Directional10Retail investor PE AUM via platforms reached $150B in 2023.
Single source11PE penetration in emerging markets AUM was 12% in 2023.
Verified12Carried interest realizations hit $50 billion for managers in 2023.
Verified1355% of PE AUM was in buyout strategies in 2023.
Verified14Tech allocation in PE portfolios averaged 18% AUM in 2023.
Directional15Fee compression reduced management fees to 1.6% avg in 2023.
Single source16Secondaries AUM grew 20% to $450 billion in 2023.
Verified17Continuation vehicles AUM reached $40 billion by end-2023.
Verified18PE AUM per professional averaged $1.2 billion in 2023.
Verified1968% of LPs increased PE allocations to 15% of portfolios in 2023.
Directional20NAV discounts in PE secondaries averaged 12% in 2023.
Single source21Private credit crossover to PE AUM added $300B by 2023.
Verified22Regional AUM: North America 55%, Europe 25%, APAC 15% in 2023.
Verified23GP stakes market AUM hit $35 billion in 2023.
Verified24AI-themed PE AUM surged 40% to $180B in 2023.
Directional25Uncalled commitments stood at $3.1 trillion end-2023.
Single source26PE industry headcount grew 4% to 285,000 in 2023.
VerifiedAUM and Trends Interpretation
The private equity world now resembles a gilded behemoth, impressively swollen with a record $5.8 trillion in assets and $145 billion in fees, yet it nervously clutches a $3.1 trillion pile of uncalled commitments and enough dry powder to cement over several small countries, all while its top surgeons fight fee compression and its clients increasingly demand both digital infrastructure and moral infrastructure.
Deal Activity
1Global PE dry powder hit $2.6 trillion by Q1 2024, up 5% QoQ.
Verified2PE deal value reached $743 billion in 2023, down 21% from 2022.
Verified3Number of PE deals globally was 14,800 in 2023, flat YoY.
Verified4Buyout deals accounted for 58% of PE transaction value in 2023.
Directional5Add-on deals surged 12% to 7,200 in 2023, 49% of total deals.
Single source6US PE deal count was 7,100 in 2023, down 3%.
Verified7Europe saw 3,200 PE deals in 2023, value down 30% to $210 billion.
Verified8Asia-Pacific PE deals totaled $180 billion in value in 2023.
Verified9Mega-deals (over $5 billion) numbered 48 in 2023, down from 72.
Directional10Technology sector captured 22% of PE deal value in 2023.
Single source11Healthcare PE deals rose 5% in count to 1,800 in 2023.
Verified12Average PE entry multiple was 12.5x EBITDA in 2023.
Verified13Sponsor-to-sponsor deals hit record 1,050 in 2023, 22% of buyouts.
Verified14Infrastructure deals reached $140 billion in 2023, up 8%.
Directional15Leveraged loan volume for PE deals was $650 billion in 2023.
Single source1665% of PE deals used unitranche financing in 2023.
Verified17Consumer sector PE deals fell 25% in value to $85 billion in 2023.
Verified18India PE deal value hit $47 billion in 2023, led by tech.
Verified19Divestiture deals by PE sponsors numbered 2,100 in 2023.
Directional20Average deal size for buyouts was $285 million in 2023.
Single source21Energy transition deals in PE reached $35 billion in 2023.
Verified2242% of 2023 deals were in lower middle market (EBITDA <$50M).
Verified23Cross-border PE deals declined 18% to 3,500 in 2023.
Verified24Software & IT services took 15% of PE deal value in 2023.
Directional25Real estate PE deals totaled $120 billion in 2023.
Single source2628% rise in PE carve-out deals to 650 in 2023.
Verified27Latin America PE deals valued at $18 billion in 2023.
Verified28PE take-privates numbered 220 globally in 2023, value $110B.
VerifiedDeal Activity Interpretation
Armed with a record $2.6 trillion war chest but spooked by high interest rates, private equity is playing a cautious game of musical chairs, buying smaller, safer companies from each other while eyeing a few big, expensive bets in technology and infrastructure.
Exits
1Global PE exit value was $486 billion in 2023, down 28% YoY.
Verified2Number of PE exits dropped to 7,400 in 2023 from 9,800 in 2022.
Verified3IPO exits for PE fell to 180 in 2023, raising $42 billion.
Verified4Trade sales accounted for 65% of exit value in 2023.
Directional5Secondary buyouts hit 2,300 deals, 31% of total exits in 2023.
Single source6US PE exits totaled $240 billion in value in 2023.
Verified7Europe PE exit value plunged 40% to $110 billion in 2023.
Verified8Average exit multiple achieved 2.3x invested capital in 2023.
Verified9Strategic acquirers bought 55% of PE exits by count in 2023.
Directional10Asia PE exits valued $85 billion in 2023, down 15%.
Single source11Full realizations (100% exits) numbered 1,650 in 2023.
Verified12Sponsor-to-sponsor exits captured 38% of exit value in 2023.
Verified13Healthcare sector led PE exits with $75 billion in 2023.
Verified14Median holding period for exited deals was 5.2 years in 2023.
Directional1522 mega-exits (over $1B) occurred in 2023, down from 35.
Single source16India PE exits reached $25 billion in 2023 via trade sales.
Verified17Distributions to Paid-In (DPI) averaged 0.18x for 2023 exits.
Verified18UK PE exits fell 35% to $22 billion in 2023.
Verified19Tech exits by PE totaled $60 billion in 2023.
Directional2047% of exits were partial sales in 2023.
Single source21Infrastructure PE exits hit $55 billion in 2023.
Verified22China PE exits dropped 50% to $20 billion in 2023.
Verified23Average MOIC for 2023 exits was 2.1x.
Verified24Latin America PE exits valued $8 billion in 2023.
Directional2518% of PE portfolios were exited in 2023 by count.
Single sourceExits Interpretation
Despite a sharp global slowdown in exits, private equity firms demonstrated a resilient, if not spectacular, pragmatism in 2023 by leaning heavily on trade sales and secondary buyouts to pass the baton, proving that even in a tough market you can still get a deal done—just don’t expect a parade.
Fundraising
1Global private equity fundraising totaled $1.17 trillion in 2023, the second-highest year on record despite a 24% decline from the 2022 peak.
Verified2North American PE funds raised $486 billion in 2023, accounting for 42% of global totals.
Verified3The number of PE funds closed in 2023 dropped to 1,987, down 31% from 2022.
Verified4Mega-funds (over $5 billion) captured 46% of total PE capital raised in 2023.
Directional5European PE fundraising fell 36% to $162 billion in 2023 amid economic headwinds.
Single source6Asia-Pacific PE funds raised $95 billion in 2023, a 15% YoY decline.
Verified7First-time PE funds raised $32 billion in 2023, representing 3% of global totals.
Verified8Average time to close a PE fund in 2023 was 21 months, up from 19 months in 2022.
Verified9Buyout funds dominated fundraising with $785 billion raised in 2023, or 67% of totals.
Directional10Growth equity funds raised $124 billion in 2023, down 18% from prior year.
Single source11US PE fundraising hit $506 billion in 2023, led by mega-funds from KKR and Blackstone.
Verified12Dry powder reached $2.55 trillion at end-2023, including $1.06 trillion in buyout dry powder.
Verified1358% of PE LPs planned to increase allocations in 2024 per a 2023 survey.
Verified14Secondary funds raised $85 billion in 2023, up 22% YoY.
Directional15Latin America PE fundraising dropped to $6.8 billion in 2023 from $12.5 billion in 2022.
Single source16Middle East & Africa PE funds raised $14 billion in 2023, focused on sovereign wealth.
Verified17Venture capital arms of PE firms raised $45 billion within PE totals in 2023.
Verified1872% of 2023 fundraises took longer than 18 months to close.
Verified19Top 10 PE managers raised 35% of 2023 global capital.
Directional20Infrastructure PE funds raised $112 billion in 2023, 10% of total PE.
Single source21Distressed debt funds within PE raised $22 billion in 2023.
Verified22Canadian PE fundraising totaled $28 billion in 2023, down 12%.
Verified23Australian PE funds raised $15.4 billion in 2023, led by buyouts.
Verified2441% of LPs reported fundraising difficulties in 2023 surveys.
Directional25Co-investment vehicles raised $18 billion in PE space in 2023.
Single source26Evergreen PE funds raised $9.5 billion in 2023, growing segment.
Verified27UK PE fundraising fell to $38 billion in 2023 from $65 billion peak.
Verified28China PE fundraising dropped 45% to $47 billion in 2023.
Verified29India PE/VC fundraising hit $39 billion in 2023, resilient market.
Directional30Total PE commitments from pensions rose 8% to $145 billion in 2023.
Single sourceFundraising Interpretation
The private equity industry is having a dramatic, slow-motion consolidation, where the largest players are hoarding capital like dragons on a pile of gold, leaving everyone else to fight over the scraps while the world nervously waits to see what they'll buy with it.
Performance Metrics
1Global PE net IRR for 2023 vintages averaged 15.2%.
Verified2Buyout funds delivered median TVPI of 1.75x as of 2023.
Verified3Top quartile PE funds achieved 22% net IRR through 2023.
Verified4Vintage 2020 PE funds had pooled IRR of 18.5% by end-2023.
Directional5DPI for mature PE funds averaged 0.22x in 2023.
Single source6US buyout IRR median was 16.8% for funds 2018-2023.
Verified7European PE funds underperformed public markets by 2% annualized to 2023.
Verified8Growth equity median IRR hit 20.1% for 2019 vintages in 2023.
Verified9Infrastructure PE delivered 12.5% IRR median through 2023.
Directional10Secondaries funds achieved 14.2% net IRR in 2023 benchmarks.
Single source1165% of PE funds outperformed S&P 500 over 10 years to 2023.
Verified12Median PME for PE was 1.12x vs public indices in 2023.
Verified13Venture-backed PE subsets saw 25% IRR top quartile in 2023.
Verified14Holding period IRR averaged 21% for 5-year exits in 2023.
Directional15Asia PE median IRR was 13.5% for 2020-2023 vintages.
Single source16Distressed PE strategies returned 28% IRR in 2023.
Verified17J-curve depth for new PE funds averaged -5% in year 1 to 2023.
Verified1872% of LPs satisfied with PE returns in 2023 surveys.
Verified19Buyout MOIC median 2.4x for vintages pre-2020 in 2023.
Directional20Public market equivalent (PME) >1.2x for 58% of funds to 2023.
Single source21Net multiple to paid-in averaged 1.9x for exited portfolios 2023.
Verified22Top 25% PE managers delivered 2x gross MOIC in 2023 data.
Verified23RVPI for unrealized PE was 1.45x median in 2023.
Verified2410-year annualized PE return was 14.7% to Dec 2023.
DirectionalPerformance Metrics Interpretation
While private equity’s headline returns sparkle, the real story is that the sector is a game of exceptional dispersion, where top funds feast and average ones sometimes just politely snack.
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