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Industry Landscape
The private equity industry, particularly in technology and tech-enabled services, remains robust with significant capital available for investment. Despite economic uncertainties, deal activity is driven by innovation, digital transformation, and consolidation opportunities. There's a strong focus on value creation through operational improvements and strategic partnerships, with increasing interest in carve-outs and middle-market companies. Valuation multiples remain high for differentiated assets.
Total Assets Under Management (AUM)
Total Assets Under Management (AUM) in United States
~Approximately 8.2 trillion USD (2023 for North America)
(15-20% CAGR)
- Driven by strong fundraising from institutional investors.
- Increased allocation to private markets for higher returns.
- Growth in dry powder awaiting deployment.
Total Addressable Market
8.2 trillion USD
Market Growth Stage
Pace of Market Growth
Emerging Technologies
Generative AI
Generative AI can automate due diligence, create sophisticated financial models, and identify novel investment opportunities by analyzing vast datasets.
Blockchain for Private Markets
Blockchain technology can enhance transparency, liquidity, and efficiency in private market transactions, potentially tokenizing private equity interests.
Advanced Data Analytics & Predictive Modeling
Sophisticated data analytics, including machine learning, can provide deeper insights into market trends, operational efficiencies, and risk assessment for portfolio companies.
Impactful Policy Frameworks
SEC Private Fund Adviser Rules (2023)
The SEC adopted new rules requiring private fund advisers to provide investors with quarterly statements detailing fees, expenses, and performance; obtain annual audits for each fund; and restrict certain preferential treatment among investors.
This policy increases compliance burden and operational costs for private equity firms by requiring greater transparency and limiting certain long-standing practices.
FIRRMA Regulations (Foreign Investment Risk Review Modernization Act of 2018, implemented 2020)
FIRRMA significantly expanded the jurisdiction of the Committee on Foreign Investment in the United States (CFIUS) to review foreign investments in U.S. businesses, particularly those involving critical technologies, critical infrastructure, and sensitive personal data.
This policy adds complexity and potential delays to cross-border private equity deals, especially for tech investments with foreign limited partners or target companies with sensitive assets.
DOJ and FTC Antitrust Enforcement (Ongoing, renewed focus in 2021-Present)
The Department of Justice and Federal Trade Commission have intensified scrutiny on mergers and acquisitions, particularly in the technology sector, focusing on potential anti-competitive effects and market concentration.
This policy can increase the regulatory hurdles and prolong the approval process for larger consolidation strategies and platform acquisitions pursued by private equity firms.
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