In this blog post, we will delve into the fascinating world of the US private equity industry and explore key statistics that shed light on this dynamic and ever-evolving sector. Private equity plays a crucial role in driving economic growth, innovation, and job creation, making it a significant force in the financial realm. By examining the latest trends and figures, we can gain valuable insights into the state of the private equity landscape in the US and its implications for investors, businesses, and the economy as a whole. Join us on this statistical journey as we uncover the latest data and trends shaping the US private equity industry.
The Latest Us Private Equity Industry Statistics Explained
Buyout funds in the US private equity market generated a 5-year net IRR of 15.6% as of June 2021.
This statistic indicates that buyout funds in the US private equity market have yielded an annualized net Internal Rate of Return (IRR) of 15.6% over a 5-year period up to June 2021. The net IRR takes into account the total returns generated by the funds after deducting fees, expenses, and carried interest payments to the fund managers. A 15.6% net IRR is considered a favorable performance metric, indicating that investors in these buyout funds have earned, on average, a 15.6% annual return on their investments over the specified period. This level of return suggests that the private equity buyout market in the US has been relatively successful in delivering attractive risk-adjusted returns to investors over the past 5 years.
As of 2021, the entire private equity industry in the United States accounted for about 130,895 jobs.
The statistic indicates that as of 2021, the private equity industry in the United States collectively contributed approximately 130,895 jobs nationwide. This figure highlights the significant role that the private equity sector plays in job creation and economic development within the country. Private equity firms typically invest in and provide capital to businesses with the goal of driving growth and expanding operations, which in turn leads to the creation of jobs across various industries and sectors. The statistic underscores the industry’s impact on employment opportunities and its contribution to the overall labor market in the United States.
By the third quarter of 2021, the value of private equity-backed buyout deals in the United States totalled $500 billion.
In the third quarter of 2021, private equity-backed buyout deals in the United States reached a total value of $500 billion, indicating a substantial level of investment activity within this sector. This statistic highlights the significant interest and volume of transactions being driven by private equity firms acquiring controlling stakes in businesses. The high value of these deals suggests that investors view the U.S. market as lucrative and ripe for growth opportunities, with private equity playing a pivotal role in shaping the corporate landscape through acquisitions and strategic investments. This statistic underscores the importance and influence of private equity in the U.S. economy, reflecting the ongoing trend of consolidation and expansion in various industries through buyout deals.
In 2020, U.S. private equity firms invested in over 5,000 American businesses.
The statistic indicates that in the year 2020, private equity firms in the United States made investments in more than 5,000 American businesses. Private equity firms invest in companies with the aim of generating returns for their investors by improving the performance and value of the businesses they invest in. This statistic highlights the significant role that private equity plays in the American economy by providing capital, support, and expertise to a large number of businesses across various industries. Additionally, it suggests that private equity firms were actively seeking investment opportunities in 2020 despite the challenges posed by the global pandemic, showcasing their confidence in the resilience and potential for growth of American businesses.
In 2020, there were 9,335 private equity backed companies in the US.
The statistic “In 2020, there were 9,335 private equity backed companies in the US” indicates the total number of companies in the United States that received financial investments from private equity firms during the year 2020. Private equity refers to funds invested in private companies or the acquisition of public companies to delist them from the stock market. This statistic suggests a significant presence of private equity activity in the US economy, highlighting the popularity of this form of investment among companies seeking capital for growth or restructuring. The number of private equity-backed companies can serve as a key indicator of the level of investment activity, economic development, and entrepreneurial potential within the private sector of the US market.
There was a 12% year-on-year increase in US private equity fundraising from 2019 to 2020.
The statistic “There was a 12% year-on-year increase in US private equity fundraising from 2019 to 2020” indicates that the total amount of funds raised by private equity firms in the United States experienced a growth of 12% when comparing the fundraising activities between 2019 and 2020. This suggests that there was a substantial rise in investor interest and confidence in the private equity market during this period, leading to a higher influx of capital into private equity investments. The increase in fundraising can be influenced by various factors such as favorable market conditions, investor appetite for alternative investments, and the performance of private equity funds compared to other investment options available.
In 2020, the median size of the private equity buyout fund in North America was $475 million.
The statistic that in 2020, the median size of the private equity buyout fund in North America was $475 million means that half of all private equity buyout funds in North America were less than $475 million in size, and half were larger than $475 million. This statistic serves as a measure of central tendency, indicating the midpoint of the distribution of buyout fund sizes in the region. It suggests that $475 million is a typical or common size for such funds in North America during the specified year, providing insight into the scale and magnitude of private equity activity in the region.
There were 1,707 active private equity firms in the US in 2020.
The statistic “There were 1,707 active private equity firms in the US in 2020” indicates the number of investment firms operating in the private equity sector within the United States during that year. Private equity firms are financial entities that manage and invest capital in privately held businesses or acquire ownership stakes in companies. This information highlights the significant presence of private equity firms in the US market, reflecting the continued interest and activity in this investment sector. The number of active private equity firms can provide insights into the level of competition, capital deployment, and overall health of the private equity industry within the US.
As of Q3 2021, there were 1.13 million employees at private equity-backed companies in the US.
The statistic indicates that as of the third quarter of 2021, there were a total of 1.13 million employees working at companies within the United States that are backed by private equity funding. This data suggests a significant workforce presence within the private equity sector, highlighting the substantial impact that these firms have on employment opportunities in the country. The statistic provides insight into the scale and influence of private equity investments in businesses, showcasing the extent to which these companies contribute to job creation and economic activity.
Private equity firms in the US invested over $800 billion in companies across all 50 states in 2019.
This statistic indicates the substantial financial impact of private equity firms in the United States during the year 2019, highlighting their prominent role in driving investment activities across various industries and states. With over $800 billion invested, private equity firms played a significant role in supporting companies’ growth and development, contributing to job creation, innovation, and economic expansion throughout the country. This level of investment underscores the importance of private equity firms as key players in the financial market, influencing businesses of all sizes and sectors across the nation.
Despite COVID-19, deal value in the US private equity sector increased by 9% in 2020.
The statistic ‘Despite COVID-19, deal value in the US private equity sector increased by 9% in 2020’ indicates that the total value of investments made in private equity transactions in the United States grew by 9% during the challenging economic conditions brought on by the COVID-19 pandemic. This increase in deal value suggests that the private equity sector in the US remained resilient and continued to attract significant investments despite the challenges posed by the global health crisis. The growth could be driven by various factors such as opportunities created by market disruptions, a low-interest-rate environment, and the availability of capital for investments. This statistic reflects the adaptability and strength of the private equity industry in navigating through a period of uncertainty and volatility.
Industrial sector deal value made up 12% of US private equity buyout deal value in 2020.
This statistic suggests that in 2020, the industrial sector accounted for 12% of the total value of private equity buyout deals in the United States. This indicates that a significant portion of the private equity activity in the country during that year was focused on investments in industrial companies. The prominence of the industrial sector in buyout deal value could be influenced by factors such as market conditions, industry performance, investor preferences, and potential growth opportunities. This statistic provides insight into the allocation of private equity capital and the relevance of the industrial sector within the US private equity landscape in 2020.
As of April 2022, the largest private equity firm in the US by assets under management is Blackstone Group, with $681 billion.
The statistic that as of April 2022, the largest private equity firm in the US by assets under management is Blackstone Group, with $681 billion indicates that Blackstone Group currently holds the highest amount of assets under management among all private equity firms operating in the United States. This figure of $681 billion represents the total value of investments, funds, and other financial assets that Blackstone Group manages on behalf of its clients and investors. As a leading player in the private equity industry, Blackstone Group’s significant assets under management reflect its strong market presence, investment capabilities, and ability to generate returns for its stakeholders.
As of 2021, New York was identified as the city with the highest number of private equity deals in the United States.
The statistic indicates that in the year 2021, New York City had the highest number of private equity deals among all cities in the United States. Private equity deals involve investments made by private equity firms into privately-held companies with the aim of generating returns. The fact that New York City led in this metric suggests that it is a major hub for private equity activity, attracting significant investment interest and serving as a key location for deal-making in the country. This statistic showcases the city’s prominence as a financial center and underscores its appeal to private equity investors seeking opportunities for growth and profitability.
References
0. – https://www.www.preqin.com
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2. – https://www.www.statista.com
3. – https://www.www.bain.com
4. – https://www.www.globalxetfs.com
5. – https://www.finance.toolbox.com
6. – https://www.privateequityatwork.com
