The private equity (PE) industry is experiencing significant growth of 10% year-over-year, with global assets under management reaching a record $6.3 trillion by the end of 2023. However, 2024 saw a record $162 billion in secondary market transactions, a 45% rise from the previous year, as investors sought liquidity amid a stagnant dealmaking environment.
In the U.S., the number of private equity, hedge funds and investment vehicle businesses stood at 11,273 in 2024, reflecting a 0.5% increase from 2023. Despite these gains, the industry faced challenges, with 110 PE-backed companies filing for bankruptcy in 2024 due to high interest rates and reduced consumer spending.
To navigate this evolving landscape and maintain competitive advantage, PE firms must adopt strategic approaches across key business functions, including financial operations, customer success, sales & marketing, investor relations and portfolio management. Improving operational efficiency, mitigating investment risks and fostering strong investor relationships are crucial for sustaining long-term enterprise value.
