Overview

Private eye: Rising asset prices are making it hard to identify undervalued firms to acquire

IBISWorld’s Private Equity market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

REPORT SNAPSHOT

Industry Analysis & Industry Trends

Private equity firms pool investment funds and use them to purchase companies. Industry firms implement managerial and operational changes, before the company is sold for a profit. These transactions often involve a large amount of debt, which is met by the revenue generated from the acquired company. The industry's main source of revenue is fees for managing the funds, but it can also include capital gains from the private equity firm's stake in the investee company.

Over the past five years, private equity and venture capital firms have found it difficult to find prospective acquisitions, which has subdued earnings. However, firms have exited some investments over the period, generating capital gains and boosting industry revenue...

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Industry Report - Industry SWOT Analysis Chapter

The Private Equity industry is in the growth phase of its life cycle. Industry value added, which measures an industry's contribution to the overall economy, is forecast to grow at an annualised 6.7% over the 10 years through 2021-22. This represents an outperformance of overall GDP, which is projected to rise at an annualised 2.5% over the same period. Prior to the global financial crisis, interest in private equity investment boomed as the sector outperformed the sharemarket. A long period of economic and financial stability gave investors the confidence to venture into riskier assets. Des..

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Industry Products

What is the Private Equity Industry?

Private equity firms manage investments in private companies. They may raise funds from external investors and invest on their behalf, invest the firms’ own funds or perform a combination of both. Investments can include venture and growth capital for emerging companies, and buyouts, which include purchases of publicly traded companies to take them private. Firms earn revenue from management fees paid by outside investors, and from gains made on investing their own funds.

Industry Products
Early-stage investments
Late-expansion investments
LBOs, MBOs and MBIs
Industry Activities
Private equity fund management on behalf of investors
Private equity investment on the firm's own behalf
Participation in the management of portfolio companies

Table of Contents

About this Industry

Industry Definition
Main Activities
Similar Industries
Additional Resources

Industry at a Glance

Industry Performance

Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle

Products & Markets

Supply Chain
Products & Services
Demand Determinants
Major Markets
International Trade
Business Locations

Competitive Landscape

Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
industry Globalisation

Major Companies

Operating Conditions

Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance

Key Statistics

Industry Data
Annual Change
Key Ratios

Jargon & Glossary

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