The U.S. private equity industry has experienced incredible growth over the last decade, going from back page news to front page headlines. With a current ownership of 6,000 U.S. companies and total assets under management of over $1 trillion, it is an asset class with strong ties to both Main Street and Wall Street. PitchBook is producing a series of reports to further explore the development, growth and trends during the last 10 years in the four core aspects of U.S. private equity: fundraising, investments, exits and fund returns.
This first installment focuses on U.S. private equity fundraising from 2001 through 2010. During this time, PE fundraising went from $68 billion in 2001 to a peak of $325 billion in 2007 before dropping to $90 billion in 2010. The number of private equity funds closed each year followed a similar trend with a total of 1,674 being raised during the decade. Total PE assets under management increased from $423.6 billion in 2001 to $1.36 trillion by the end of 2010. These statistics and many more like them demonstrate the ability of private equity to attract enormous sums of capital and the success the industry has experienced over the last decade.
U.S. private equity funds raised a total of $1.5 trillion through 1,674 funds from 2001-2010
For a sense of scale, PE raised $325B in 2007, the same amount as the entire economy of Denmark produced (GDP) that year*
PE fundraising crossed the $100B mark for the first time in 2005. One year later it crossed $200B and, one year after that it crossed the $300B mark
Capital raised increased by 6.7x from 2003 to 2007, but the number of funds only increased by 2.4x