Private Equity Market to Exceed USD 37 Trillion by 2031 Globally, Led by Buyout Strategies and Large-Cap Deals, Reports Mordor Intelligence

HYDERABAD, India, Jan. 22, 2026 /PRNewswire/ -- According to Mordor Intelligence, the private equity market size stood at USD 19.96 trillion in 2026 and is projected to reach USD 37.85 trillion by 2031, reflecting a CAGR of 13.65%. This growth highlights the market's evolution from a niche asset class into a mainstream investment channel attracting diverse investors worldwide. Record dry-powder levels are enabling firms to pursue new opportunities, while strong deal activity continues across key regions and sectors. With robust capital deployment and strategic acquisitions, private equity is increasingly shaping global investment dynamics and positioning itself as a critical avenue for long-term value creation. 

Regional Market Outlook 

North America: The region continues to lead the private equity market, supported by deep capital markets, stable regulatory frameworks, and diverse sector opportunities. U.S. activity is driven by public-to-private acquisitions, infrastructure investments, and corporate carve-outs, while Canada's resource sector and Mexico's manufacturing ecosystem add diversification. Cross-border M&A is gaining momentum, fueled by near-shoring trends, and liquidity remains robust through IPOs, secondary sales, and a thriving secondary-market ecosystem. 

Europe: Investment and exit activity are experiencing a strong rebound, led by industrial automation, climate-tech, digital services, and renewable energy. Artificial intelligence funding is accelerating, highlighting a shift toward long-term growth sectors. The U.K. is preparing new platforms to broaden retail participation in private equity, while Southern Europe benefits from tourism recovery and EU Green Deal initiatives that support infrastructure projects. Together, these trends help Europe maintain its strategic relevance despite financing costs and geopolitical challenges. 

Major Drivers of the Private Equity Market 

Growing Interest in Private Equity Among Long-Term Investors 

Pension funds and sovereign wealth investors are increasingly allocating capital to private equity, drawn by its potential to hedge against market volatility and inflation. These long-term investors participate in direct deals and co-investments, shaping fund economics and accelerating execution. Their steady capital commitments help sustain fundraising and provide a reliable foundation for the private equity market, even during challenging macroeconomic conditions. 

Surge in Uninvested Capital Drives Deal Activity 

Abundant dry powder is creating pressure on fund managers to deploy capital efficiently. Investment teams are speeding up due diligence and pursuing larger transactions, while mid-market specialists benefit from less competition. In sectors like healthcare and B2B software, plentiful capital encourages sellers to enter the market earlier, supporting a steady flow of deals. Funds are also exploring joint investments and structured pricing to manage risk while maintaining returns. 

Major Segments Driving Market Growth 

By Fund Type 

• Buyout & Growth 
• Venture Capital 
• Mezzanine & Distressed 
• Secondaries & Fund of Funds 

By Sector 

• Technology (Software) 
• Healthcare 
• Real Estate and Services 
• Financial Services 
• Industrials 
• Consumer & Retail 
• Energy & Power 
• Media & Entertainment 
• Telecom 
• Others (Transportation, etc.) 

By Investments 

• Large Cap 
• Upper Middle Market 
• Lower Middle Market 
• Small & SMID 

By Geography 

• North America 
• South America 
• Asia-Pacific 
• Europe 
• Middle East and Africa 

Overview – Private Equity Industry 

 
Private Equity Companies  

• Bain Capital 
• BC Partners 
• Blackstone 
• Brookfield Asset Management 
• Carlyle Group 
• Cinven 
• Clayton Dubilier & Rice 
• CVC Capital Partners 
• EQT AB 
• General Atlantic 
• Hellman & Friedman 
• Insight Partners 
• KKR 
• Neuberger Berman 
• Oaktree Capital Management 
• Partners Group 
• Permira 
• Silver Lake 
• Thoma Bravo 
• TPG Capital 
• Vista Equity Partners 
• Apollo Global Management 

Read the detailed industry insights on the private equity market: https://www.mordorintelligence.com/industry-reports/global-private-equity-market?utm_source=prnewswire 

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