The private equity market will experience unprecedented momentum in 2025. With record investments in Europe (€126 billion in 2024, an increase of 24%) and a renaissance of megadeals, the industry demonstrates its unbroken appeal. But while major players like KKR, Blackstone, and Apollo expand their dominance, new market mechanisms and regulations are fundamentally changing the rules of the game. A look behind the scenes of the multi-billion dollar market, which remains on an expansion path despite—or perhaps because of—global uncertainties.

The private equity boom: Facts and figures of the record hunt

Private equity has evolved from a niche product to a mainstream investment. This asset class, which includes investments in private companies, has experienced impressive growth in recent years. The performance speaks for itself: With average annual returns of 13.1% for buyouts, PE investments significantly outperform the broader market indices (8.6%).

The unbridled momentum is particularly evident in Europe. €126 billion was invested in 2024 alone – a 24% increase over the previous year. PE funds raised €156 billion in fundraising, a record. This flood of capital is leading to a veritable race for attractive acquisition targets. At the same time, the basic structure of the investments remains the same: Capital is typically tied up for 8-12 years, with the promise of above-average returns to compensate for the low liquidity.

What makes the market particularly interesting is that the number of private companies far exceeds the number of listed companies—a vast investment pool that remains largely inaccessible to traditional investors. This is precisely where the strength of PE firms lies: They tap into this universe with specialized expertise and active management.

The strategies of the industry giants

The industry’s major players – KKR, Blackstone, Carlyle, Apollo, and TPG – continue to dominate the PEI 300 rankings, leveraging a combination of specialization and diversification. KKR has overtaken Blackstone as number 1 in the 2025 PEI 300 rankings, with USD 126.5 billion in assets under management compared to Blackstone’s USD 82.46 billion. They leverage their market power to make acquisitions in strategic sectors, often in the form of larger, concentrated deals. They are increasingly using co-investment vehicles and secondary market structures that offer additional flexibility. The trend is clearly towards larger transactions with a stronger sector focus – be it in the technology sector, healthcare, or infrastructure investments. At the same time, the industry leaders are tapping into sources of capital beyond traditional institutional investors through new fund structures, further increasing assets under management. The focus on a few, but all the more significant, transactions enables the deployment of specialized teams that can intervene deeply in the operational processes of the portfolio companies – a decisive competitive advantage over more passive forms of investment.

The dark side of the boom: risks and criticism

Despite its success story, private equity is increasingly under criticism. High fee structures—typically a 2% management fee plus 20% carried interest—significantly reduce net returns, especially for investments via funds of funds with multi-tiered fee systems.

Another point of criticism: The impact on acquired companies and their employees is not always positive. While private equity firms promise growth and value enhancement, restructuring measures often lead to job cuts and a reduction in quality. 460 US hospitals are already private equity-owned (as of February 2024). Particularly in the healthcare sector, studies have linked private equity investments to hospital closures and deteriorated quality of care. A prominent example is the bankruptcy of Steward Health Care in 2024. A JAMA study from December 2023 points to increased complications in private equity hospitals. The bipartisan Senate report from January 2025 addresses the negative effects of these developments.

The industry is also coming under regulatory pressure. The tax treatment of carried interest—taxed in many countries at the more favorable capital gains tax rate rather than as regular income—is the subject of political debate. Regulators in both the US and Europe are tightening reporting and transparency requirements for private equity funds. A January 2025 study by the US Department of Health and Human Services (HHS) on healthcare consolidation recommends further legislative measures following the Steward bankruptcy.

The illiquidity of investments remains a structural risk. Although secondary markets are developing, exit options before the end of the typical 8-12-year fund term remain limited and often involve discounts.

Neue Spielregeln: Demokratisierung und Sekundärmarkt-Revolution

Eine der spannendsten Entwicklungen im PE-Markt ist seine zunehmende Öffnung für breitere Investorenkreise. Digitale Plattformen wie Moonfare und spezielle Strukturen von Anbietern wie Altaroc senken die Einstiegshürden für Privatanleger und Family Offices. Was früher institutionellen Investoren vorbehalten war, wird nun auch für vermögende Privatpersonen zugänglich.

Parallel dazu revolutioniert der ausgereifte Sekundärmarkt die traditionell illiquide Anlageklasse. Er ermöglicht Investoren frühzeitigere Ausstiegsoptionen, was die Portfolioflexibilität erhöht und das Risikomanagement verbessert. Diese Entwicklung könnte langfristig einen der größten Nachteile von Private-Equity-Investments – die lange Kapitalbindung – abschwächen. Konkrete Beispiele zeigen eine Zunahme von Sekundärtransaktionen, die das Marktvolumen im letzten Jahr um 20% erhöhten.

Erfolgsstrategien für 2025 und darüber hinaus

Der Trend zum „Länger-privat-Bleiben“ verstärkt sich weiter. Dank des reichlich vorhandenen privaten Kapitals verzichten immer mehr Unternehmen auf einen Börsengang und bleiben in der PE-Welt. Dies eröffnet zusätzliche Möglichkeiten für Sekundärtransaktionen zwischen verschiedenen PE-Fonds.

Erfolgreiche Investoren setzen verstärkt auf Spezialisierung und operatives Know-how. Die Zeiten, in denen allein der Einsatz von Fremdkapital (Leverage) für überdurchschnittliche Renditen sorgte, sind vorbei. Heute ist die Fähigkeit, Unternehmen operativ voranzubringen, der entscheidende Erfolgsfaktor – sei es durch Digitalisierung, internationale Expansion oder strategische Zukäufe.

Der Milliardenmarkt im Wandel

Private Equity hat sich vom exklusiven Club zum bedeutenden Wirtschaftsfaktor entwickelt. Mit seiner Mischung aus langfristiger Perspektive und aktivem Management bietet PE eine Alternative zur oft kurzfristigen Orientierung der öffentlichen Märkte. Die Herausforderung für die Branche: Balance finden zwischen Renditestreben und nachhaltiger Wertschöpfung.

Für Investoren bleibt Private Equity trotz aller Risiken eine attraktive Assetklasse mit überdurchschnittlichem Renditepotenzial. Der Schlüssel zum Erfolg liegt in der sorgfältigen Auswahl von Fondsmanagern mit nachgewiesener Erfolgsbilanz und der richtigen Mischung aus verschiedenen PE-Strategien – von Venture Capital über Growth Equity bis hin zu Buyouts und Turnaround-Investments.

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Senate Budget Committee Report – January 2025

McKinsey Global Private Markets Report 2025