The United States, a country with a strong reputation for PE, is experiencing significant changes in its market structure. Institutional investors are moving into the private market, transforming PE into a massive industry. Meanwhile, in the public market, companies with higher market capitalizations are increasingly attracting capital from institutional investors.
In the United States, deregulation has dramatically increased the fundraising power of the private market, which has had a major impact on everything from the rise in early-stage financing to the increase in the number of unicorns.
The global PE market has seen annual fundraising of $500B, AUM expanding to $4T, and dry powder accumulating to $1.7T. With the urgent need to find investment opportunities, PE firms have rapidly expanded their growth equity offerings in addition to LBOs in recent years to meet the need for large-scale fundraising at later stages and beyond.
The US PE market has a history of over 40 years, accounting for 60% of the global PE market, with over half of the PE firms being U.S. nationals. In contrast, Japan's market has only been around for about 20 years, and there are fewer than 100 PE firms, but market demand for LBO strategies, such as for business succession issues, carve-outs, and going private, is increasing year by year.
Following the trend in the US, growth equity investments in startups are increasing in Japan as well, and domestic PE firms are expanding their business domains into areas close to those of VC.
Based on the above, this report will examine the history and reality of PE from a wide range of perspectives, including differences in market structure between Japan and the US, trends among institutional investors, and the relationship between VC and PE.
Report format: PDF (8.12MB)
Original data: PowerPoint, 89 slides, A4 size