DOWNLOAD: Tracking private equity’s transformation

The asset class has changed markedly since Private Equity International first started reporting on it in 2001.

Click on the top right of the report to view full screen.

When Private Equity International published its first issue in December 2001, $1 billion-plus private equity funds were few and far between, and fundraising “was very much a physical sport”, per Niklas Amundsson, a partner at placement firm Monument Group, with physical data rooms for due diligence and frequent travel for in-person meetings. Meanwhile, secondaries market transaction volume was in the single-billion dollars; the term ‘ESG’ had not yet been coined; and the industry was largely overlooked by regulators.

Much has changed over the past two decades. The 10 largest funds closed in H1 2022 raised $133 billion between them, per PEI data, and virtual data rooms and online meetings are now commonplace, particularly post-covid. At the same time, the secondaries market has grown significantly, with advisers estimating that secondaries transaction volume grew to around $130 billion in 2021.

When it comes to environmental, social and governance considerations, LPs are paying increasing attention to GPs’ approaches, reporting and performance, including their actions around DE&I. The private equity industry has also been subject to market-changing reforms over the past 21 years, such as the Alternative Investment Fund Managers Directive and the Dodd-Frank Act following the global financial crisis, and more recently ESG-focused legislation such as the EU’s Sustainable Finance Disclosure Regulation.

Perhaps most notable of all, however, is the substantial rise in LP appetite for the asset class – according to PEI’s Global Investor 100 ranking, the world’s 100 largest private equity investors allocated $1.79 trillion to PE in 2021.

These developments are explored in this interactive presentation, which highlights the key takeaways from PEI’s 21st Anniversary special report.

Click here to download a PDF of the presentation