Private Equity Fund Managers NAICS 523940

The 24,200 portfolio management firms in the US includes private equity (PE) fund managers who invest in the stock of companies that are not publicly traded. PE funds typically take a significant stake in portfolio companies that allow them to influence or control management and governance.

High Risk, High Reward

As a long-term investment, private equity funds offer higher risk and higher reward compared to more traditional asset classes.

Dependence on Debt

Private equity firms are heavily dependent on debt to finance acquisitions.

Industry size & Structure

The US private equity fund management industry is part of the portfolio management industry. The average portfolio management company employs 9 workers and generates about $13 million annually.

• The US portfolio management industry consists of about 24,200 firms that employ about 220,200 workers and generate $314 billion annually.

• The global private equity industry held about $4.2 trillion in assets under management in 2021 and $1.3 trillion in “dry powder,” or cash reserves, according to Preqin.

• The global private equity industry is concentrated; about 45% of the aggregate capital raised in 2019 was secured by the 20 largest funds, according to Preqin.

• The North American PE market is the largest in the world and accounts for just under half of global deal value, according to Bain. Other important PE markets include Europe and China.

• Large firms with private equity operations include the Carlyle Group, Blackstone Group, KKR, Apollo Global, and TPG. Large firms are often diversified, manage different types of assets, and typically have operations throughout the world.

• US PE firms closed on $343 billion across 405 funds during 2022, according to PitchBook. Estimated deal value for US PE firms totaled $1 trillion.