Overview

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

IBISWorld’s Private Equity market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Private equity and venture capital firms have had difficulty finding prospective acquisitions
  • Private equity firms have had greater scope to fund leveraged buyouts or invest in new projects
  • Improvements in business confidence and market conditions will fuel more profitable exits

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    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 Investment Chapter

    Capital intensity is determined by comparing the labour and capital equipment factors of production, using wages and depreciation costs as proxies. Comparatively high depreciation costs indicate a high level of investment in depreciable assets (such as buildings and equipment), and therefore represent high capital intensity. Conversely, comparatively high wage costs indicate high labour intensity.

    The Private Equity industry displays a low level of capital intensity. For every dollar paid as wages, an estimated $0.04 is spent on capital investment. The industry's services are provided based on the knowledge and strategic decision-making skills of fund managers and analysts, who typically receive substantial compensation. Pri..

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    Additional Insights for the Private Equity Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Private Equity Industry are

  • Retaining well-regarded investment managers
  • Having a strong performance track record
  • Having a clear market position
  • IBISWorld analysts also discuss how external factors such as All Ordinaries index and Business confidence index in the Private Equity industry impact industry performance..

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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 Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • All Ordinaries index
  • Business confidence index
  • Cash rate
  • Value of managed funds

  • Current Performance
  • Historical context
  • Post-crisis performance
  • Exits
  • Chart: Revenue Growth

  • Industry Outlook
  • Profitability
  • More investment options
  • Competition
  • Table: Private Equity Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Private Equity Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Life Insurance
  • Superannuation Funds
  • Consumers

  • Key Selling Industries
  • Custody, Trustee and Stock Exchange Services
  • Investment Banking and Securities Brokerage
  • National and Regional Commercial Banks

  • Products & Services
  • Late-expansion investments
  • LBOs, MBOs and MBIs
  • Other
  • Early-stage investments
  • Chart: Private Equity Industry Products and Services Segmentation

  • Demand Determinants
  • Demand for investment
  • Demand for funding

  • Major Markets
  • Superannuation funds
  • Overseas investors
  • Other investors
  • Corporate investors
  • Trusts
  • Chart: Major Market Segmentation for the Private Equity Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Private Equity

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Private Equity Industry

  • Industry Globalization
    Major Companies
    Pacific Equity Partners Pty LimitedArcher Capital Pty LimitedChamp Group Holdings Pty Limited
  • Table: Pacific Equity Partners Pty Limited - financial performance
  • Table: Archer Capital Pty Limited - financial performance
  • Table: Champ Group Holdings Pty Limited - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Private Equity Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Private Equity Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Cloud Computing
  • Computing model in which companies' computer applications are hosted in outside services accessible via the internet.
  • Collective Investment Scheme
  • A fund that pools investors' money before investing, enabling participation in a wider range of investments and generation of economies of scale in terms of transaction and management costs.
  • Management Buy-In
  • A process when an outside management team, with financial backing from private equity, buys a company and replaces its management.
  • Private Equity Firm
  • This type of firm acts as the manager of private equity funds, on behalf of the funds' investors. Many private equity firms also invest their own money directly.
  • Private Equity Fund
  • A structure into which a pool of money, raised from investors, is put before being invested in private equity deals.
  • Venture Capital
  • A sub-segment of private equity. Capital provided to start-up and early-stage companies to help bring ideas or inventions to market.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Private Equity:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Private Equity market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Private Equity, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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