While global private equity fundraising reached a record-breaking $1.2 trillion in 2023, a closer look reveals an industry in the midst of a profound and contrasting transformation.
Key Takeaways
- In 2023, global private equity fundraising totaled $1.2 trillion, marking a 10% increase from 2022 despite economic headwinds
- North American PE firms raised $486 billion in 2023, accounting for 40% of global totals
- The number of PE funds closed in 2023 was 2,456, down 15% from the previous year
- Global PE deal value reached $743 billion in 2023, down 22% from 2022
- Number of PE deals globally was 14,500 in 2023, a 25% decline YoY
- US VC investment totaled $130.2 billion across 12,000 deals in 2023
- Global exits from PE portfolios reached $462 billion in 2023, down 28% YoY
- Number of PE exits globally was 7,800 in 2023, down 20%
- IPOs accounted for 15% of PE exits by value in 2023, totaling $70 billion
- Net IRR for top-quartile PE funds averaged 18.5% as of 2023 vintage
- Global PE pooled IRR was 14.2% for 2018-2023 vintages
- US VC median TVPI was 2.1x for 2019 vintage funds in 2023
- Number of PE firms worldwide exceeded 5,000 in 2023
- VC deal share in AI/ML rose to 20% of total VC in 2023
- PE dry powder to GDP ratio hit 3.5% globally in 2023
Private equity fundraising grew while venture capital faced declines last year.
Exits
1Global exits from PE portfolios reached $462 billion in 2023, down 28% YoY
Verified2Number of PE exits globally was 7,800 in 2023, down 20%
Verified3IPOs accounted for 15% of PE exits by value in 2023, totaling $70 billion
Verified4Strategic sales made up 55% of PE exit value in 2023
Directional5US VC exits generated $85 billion in 2023
Single source6Secondary buyouts represented 30% of PE exits in 2023, value $140 billion
Verified7Average MOIC for exited PE deals was 2.4x in 2023
Verified8European PE exit value was €85 billion in 2023, down 35%
Verified9VC M&A exits totaled $50 billion globally in 2023
Directional10Number of PE IPOs was 120 in 2023, raising $60 billion
Single source11Asia PE exits reached $90 billion in 2023, led by trade sales
Verified12Median holding period for PE exits shortened to 4.8 years in 2023
Verified13US PE exit multiples averaged 14.2x EBITDA in 2023
Verified14Continuation vehicle exits generated $20 billion in 2023
Directional15Global VC IPOs numbered 45 in 2023, down from 150 in 2021
Single source16PE sponsor-to-sponsor exits hit 2,300 deals in 2023
Verified17Healthcare PE exits were $100 billion in 2023
Verified18India VC exits totaled $6.5 billion in 2023
Verified19Average gross IRR for exited VC deals was 25% in 2023 cohorts
Directional20Secondary transactions in PE reached $135 billion in 2023, up 25%
Single source21UK PE exits were £35 billion in 2023
Verified22Fintech VC exits generated $15 billion in 2023
Verified23Global PE distributions to LPs were $400 billion in 2023
Verified24Biotech VC exits totaled $18 billion in 2023
Directional25Latin America VC exits were $2.8 billion in 2023
Single source26PE exit activity in Q4 2023 rebounded 15% QoQ
VerifiedExits Interpretation
Amidst a global market downturn, the exit landscape reveals a resilient, if pragmatic, industry: sponsors are trading trophy exits for dependable strategic sales and sponsor-to-sponsor handoffs, proving that while the party’s music slowed, the dealmakers simply found new dance partners.
Fundraising
1In 2023, global private equity fundraising totaled $1.2 trillion, marking a 10% increase from 2022 despite economic headwinds
Verified2North American PE firms raised $486 billion in 2023, accounting for 40% of global totals
Verified3The number of PE funds closed in 2023 was 2,456, down 15% from the previous year
Verified4Average fund size for PE buyout funds reached $1.1 billion in 2023, up from $950 million in 2022
Directional5Venture capital fundraising in Europe hit €25 billion in 2023, a 25% decline YoY
Single source6Dry powder in private equity stood at $2.55 trillion at the end of 2023
Verified7Asia-Pacific PE fundraising reached $150 billion in 2023, led by China and India
Verified8Mega-funds (over $5 billion) accounted for 45% of total PE capital raised in 2023
Verified9First-time PE funds raised $45 billion in 2023, representing 3.8% of total fundraising
Directional10Continuation funds raised $50 billion in 2023, up 20% from 2022
Single source11US VC funds raised $78.5 billion in 2023 across 1,025 funds
Verified12European PE dry powder hit €500 billion by end-2023
Verified13Global VC fundraising declined 38% to $269 billion in 2023 from 2022 peak
Verified14PE secondaries fundraising reached $85 billion in 2023, a record high
Directional15Latin America VC fundraising totaled $3.2 billion in 2023, down 45% YoY
Single source16In 2023, 65% of PE capital was raised by firms with over $10 billion AUM
Verified17Growth equity funds raised $120 billion globally in 2023
Verified18Time to close for PE funds averaged 22 months in 2023, up from 19 months in 2021
Verified19Sovereign wealth funds committed $70 billion to PE in 2023
Directional20Family offices increased PE allocations to 15% of portfolios in 2023 surveys
Single source21Global PE capital raised in H1 2024 reached $349 billion, down 24% YoY
Verified22VC funds in India raised $8.9 billion in 2023
Verified23PE fundraising from pensions hit $150 billion in 2023
Verified24Number of PE funds in market dropped to 4,000 in 2023 from 5,500 peak
Directional25US mega VC funds (over $1B) numbered 45 in 2023
Single source26European VC early-stage fundraising was €12 billion in 2023
Verified27Global infrastructure PE fundraising was $110 billion in 2023
Verified28PE funds targeting AI raised $30 billion in 2023
Verified29Average DPI target for new PE funds rose to 1.8x in 2023
Directional30In 2023, global buyout fundraising was $685 billion, 57% of total PE
Single sourceFundraising Interpretation
In 2023, the private equity and venture capital industry demonstrated a defiant, if not selective, optimism, as a record-breaking sum of dry powder now sits impatiently in fewer, larger funds, proving that even in a downturn, money still has a favorite club, but getting past the velvet rope just got a lot harder.
Investments
1Global PE deal value reached $743 billion in 2023, down 22% from 2022
Verified2Number of PE deals globally was 14,500 in 2023, a 25% decline YoY
Verified3US VC investment totaled $130.2 billion across 12,000 deals in 2023
Verified4Mega-deals (over $1 billion) in PE numbered 380 in 2023, 30% down
Directional5European PE investments were €120 billion in 2023, down 28% YoY
Single source6VC investment in AI startups hit $42.5 billion in 2023 globally
Verified7Average PE entry multiple was 12.5x EBITDA in 2023, down from 14.2x
Verified8Late-stage VC deals averaged $50 million in 2023
Verified9Asia PE deal count was 3,200 in 2023, value $180 billion
Directional10Sector-wise, healthcare PE investments were $150 billion in 2023
Single source11Add-on deals comprised 62% of total PE transactions in 2023
Verified12India VC funding reached $8.9 billion across 1,200 deals in 2023
Verified13Global VC seed funding was $20 billion in 2023, down 40% YoY
Verified14PE investments in software sector hit $100 billion in 2023
Directional15Average VC round size grew to $15 million in 2023 from $12 million
Single source16Latin America VC investments totaled $4.1 billion in 2023
Verified17UK PE deal value was £45 billion in 2023
Verified18Fintech VC funding globally was $28 billion in 2023, down 45%
Verified19PE controlcar investments averaged 45% equity stake in 2023
Directional20Climate tech VC investments reached $25 billion in 2023
Single source21China PE deal value was $70 billion in 2023, down 30%
Verified22US PE buyout deals numbered 2,800 in 2023, value $450 billion
Verified23Median VC valuation for Series A was $45 million in 2023
Verified24PE co-investments grew to $60 billion in 2023
Directional25Biotech VC funding was $22 billion across 1,500 deals in 2023
Single source26Global PE debt financing for deals averaged 45% of enterprise value in 2023
Verified27Early-stage VC deal count was 5,200 globally in 2023
Verified28PE investments in consumer sector totaled $80 billion in 2023
VerifiedInvestments Interpretation
The industry tightened its belt with a disciplined sigh in 2023, writing fewer but bigger checks, proving that even in a cautious market, the smart money still knows how to find a promising deal and a comfortable majority stake.
Performance
1Net IRR for top-quartile PE funds averaged 18.5% as of 2023 vintage
Verified2Global PE pooled IRR was 14.2% for 2018-2023 vintages
Verified3US VC median TVPI was 2.1x for 2019 vintage funds in 2023
Verified4Average MOIC for PE buyouts was 2.6x across exited deals to 2023
Directional5Top-quartile VC funds delivered 28% net IRR for 2017 vintage in 2023
Single source6PE DPI globally reached 0.18x for 2020 vintage by end-2023
Verified7European PE IRR averaged 12.5% for mature funds in 2023
Verified8VC gross multiples averaged 3.2x for 2016-2020 vintages
Verified9PE fund J-curve deepened with negative returns in year 1 averaging -5%
Directional10Asia PE top-quartile IRR was 20.1% for 2015-2020 funds
Single source11Median PE fund TVPI was 1.45x for 2017 vintage in 2023
Verified12VC seed stage median IRR was 15% for mature funds to 2023
Verified13PE value creation from operational improvements averaged 40% of total returns in 2023 studies
Verified14Global PE PME was 1.25x vs public markets to 2023
Directional15Late-stage VC TVPI averaged 1.8x for 2020 vintages
Single source16PE buyout IRR dispersion: top quartile 22%, bottom 8% in 2023 data
Verified17India VC IRR for top funds exceeded 30% annualized to 2023
Verified18PE NAV sensitivity to rate hikes reduced returns by 200bps in 2023
Verified19Growth equity median MOIC was 2.2x for exited portfolios to 2023
Directional20VC power law distribution: top 1% deals drove 50% returns in 2023 analyses
Single source21PE fund fee compression: management fees down to 1.4% in 2023
Verified22UK VC DPI was 0.12x for recent vintages in 2023
Verified23Global PE unrealized value grew 8% in 2023 despite slowdowns
Verified24Biotech VC median IRR was 10% for 2015-2020 funds
Directional25PE leverage contributed 25% to returns in 2023 exited deals
Single source26Fintech VC top-quartile IRR hit 35% for 2018 vintages
VerifiedPerformance Interpretation
In the high-stakes theater of private equity and venture capital, the stark truth is that while top performers bask in returns north of 20%, the median fund barely keeps pace with a solid public market benchmark, revealing an industry powered by a punishing power law, generous leverage, and management fees that are—thankfully—slowly shrinking.
Trends
1Number of PE firms worldwide exceeded 5,000 in 2023
Verified2VC deal share in AI/ML rose to 20% of total VC in 2023
Verified3PE dry powder to GDP ratio hit 3.5% globally in 2023
Verified4Women-led VC funds managed $15 billion AUM in 2023, up 20%
Directional5ESG integration in PE funds reached 85% in 2023 surveys
Single source6VC investment concentration: top 10% startups got 60% funding in 2023
Verified7PE multiple arbitrage declined to 200bps premium in 2023
Verified8Rise of specialist PE funds: 40% focused on one sector in 2023
Verified9VC geographic concentration: 50% funding in 5 global hubs in 2023
Directional10PE GP-led secondaries grew to 20% of secondary volume in 2023
Single source11Adoption of AI in PE operations reached 60% of firms in 2023
Verified12VC down rounds increased to 15% of total rounds in 2023
Verified13PE interest in emerging markets rose to 25% of deals in 2023
Verified14Number of unicorn startups grew to 1,200 by end-2023
Directional15PE fund terms: 50% now include LP co-investment rights in 2023
Single source16VC stage shift: late-stage 45% of value in 2023 vs 30% in 2020
Verified17Regulatory scrutiny on PE increased 30% in filings in 2023
Verified18PE tech stack investments hit $5 billion annually by 2023
Verified19Diversity in PE: 18% female managing partners in 2023, up from 12%
Directional20VC syndication networks shrank 10% post-2022 in 2023 data
Single sourceTrends Interpretation
Despite the industry's hopeful spread of ESG, AI enthusiasm, and emerging market curiosity, the growing concentration of capital, power, and regulatory attention reveals a mature field grappling with the paradox of being everywhere at once while still betting on the same few horses.
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