The private equity sector has experienced tremendous growth over the last five years, in absolute number of private equity firms, in the funds committed to the sector, in the number of executives working in the industry and in the number of portfolio companies acquired.
In fact, private equity investments have become so prolific, that few industry sectors (if any) remain untouched by private equity. Ten years ago, many business owners, especially in the mid-market, were unfamiliar with private equity. Yet, today, most businesses have interacted with private equity in some fashion, either through an acquisition, growth capital injection, introductory meetings & preliminary conversations, or, at the very least, some form of marketing outreach.
Growth in Private Equity Firms
The graph below shows the trend in the number of PE firms over the past 5 ½ years, from our M&A Research Database at www.PrivateEquityInfo.com.
Because there are some caveats (discussed below) that play into the exact quantity of firms shown, this graph is best viewed as indicative of the overall trend in private equity over time. Clearly, the trend is one of growth. In fact, ~12% compound annual growth over 5.5 years.