Here are four key takeaways from the report:
- A Vast, Underestimated Market: The private equities universe is far larger than commonly perceived, with a total market capitalization of $60 trillion across nearly 935,000 firms—over ten times the assets under management of global private equity funds.
- Private vs. Public Are Different Worlds: Private firms are not just smaller versions of public ones. As of year-end 2024, the median private company is significantly smaller, less profitable, more leveraged, and trades at a higher valuation multiple (EV/EBITDA) than its listed counterpart.
- Deal Activity Peaked in 2021: Private equity transaction volume reached a record high in 2021 with 1,023 deals tracked, spurred by low interest rates and a favorable financing environment, before slowing in the following years.
- Business Model Drives Value: The PECCS® framework reveals how value is created, showing that service-based companies, while only making up 43% of firms, generate over 50% of the total enterprise value ($63.5 trillion) in the private market.