Research Outline

Private Equity and Venture Capital Industries

Goals

To to an analysis of the private equity and venture capital industries. Information to be provided includes number of companies, amount of capital available for investment, the industries invested in, and growth rates of each respective industry.

Early Findings

Private Equity (PE)

  • In 2018, the global private equity industry experienced an impressive increase in investment as a result of factors that included fierce competition and rising asset prices that continued to constrain deal counts.
  • In 2018, the number of individual transactions in the private equity industry decreased in number by 13% to 2,936 worldwide. However, the total buyout value jumped 10% to a value of $582 billion (inclusive of add-on-deals) capping the strongest five-year run in the industry’s history.
  • According to Investopedia, the volume of private equity deals in 2017 was $1.3 trillion and the average deal size in this year was $157 million.
  • According to Investopedia, key players within the global private equity industry include Apollo Global Management LLC, Blackstone Group LP, Carlyle Group, KKR & Company LP, Ares Management LP, Oaktree Capital Management LP, Fortress Investment Group LLC, Bain Capital LLC, TPG Capital LP, and Ardian.
  • A list of the top 300 private equity firms in the world can be accessed on the Private Equity International website.

Venture Capital (VC)

  • By the end of 2018, the United States venture capital industry invested $130.9 billion in US-based startups, surpassing the all-time high that was experienced in 2000.
  • In 2018, a total of $254 billion was invested globally into an estimated 18,000 startups via venture capital financing. This represented a a 46% increase from 2017’s figures.
  • The United States accounted for 52% of the total global venture capital investment. This translates to $131 billion.
  • Key players within the venture capital industry include Start-Up Chile, Insight Venture Partners, Tencent Holdings , New Enterprise Associates , Sequoia Capital China , Accel , Sequoia Capital , Higher Ground Labs , Quake Capital Partners , and Goldman Sachs.
  • A list of the top 100 venture capital firms in the world can be accessed on the CB Insights website.
  • According to the National Venture Capital Association, there are 798 venture capital firms in the United States down from 1,009 that existed in 2005.