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Private Equity in the UK: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Private Equity Market Research Report | SIC K64.303 | May 2017

Capital performance: The industry has recorded strong growth, a trend that is expected to continue

IBISWorld’s Private Equity market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

Report Snapshot
Market Share of Companies
Blackstone Group Blackstone Group market share
Kohlberg Kravis Roberts & Co. Kohlberg Kravis Roberts & Co. market share
Industry Statistics & Market Size
Revenue
£2bn
Annual Growth 13-18
4.3%
Annual Growth 18-23
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Profit
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Employment
6,489
Businesses
266
Industry Threats & Opportunities
  • The industry has continued to grow strongly, despite uncertainty due to the EU referendum
  • The introduction of the Basell III banking reforms have constrained growth
  • Operators are expected to increasingly invest in emergent fintech firms over the coming years
  • ... purchase to read more

Industry Analysis & Industry Trends

The United Kingdom is the largest European centre for the management of private equity investments and funds, and is second only to the United States in terms of global importance. Private equity firms pool investment funds (capital commitments) to purchase other companies. Industry operators attempt to improve performance by implementing managerial and operational changes, before selling the company for a profit. Private equity transactions often involve a large amount of debt. The industry’s key source of revenue are fees derived from managing investors’ funds.

Over the five years through 2017-18, revenue is expected to increase at a compound annual rate of 4.3%... purchase to read more

Industry Report - Industry Locations Chapter

The dispersion of industry establishments largely corresponds to the proximity to funding as well as target companies.

London

London is a major global financial centre and is expected to house 53.1% of industry establishments in 2017-18. There are two key reasons for this. Firstly, being sited in London allows private equity firms to be located close to a large number of potential investors with the vast majority of pension funds and corporate investors located in the capital. The second reason is the concentration of knowledge and expertise in the form of management and analysts. The expertise and skill of the manager who operates the fund and makes investment decisions is crucial to the success of the business and the returns it generates for investors. As .. purchase to read more

Additional Insights for the Private Equity Industry

IBISWorld identifies 250 Key Success Factors for a business.The most important for the Private Equity Industry are

  • Access to highly skilled workforce
  • Having a good reputation
  • Having a clear market position
  • IBISWorld analysts also discuss how external factors such as FTSE 100 and Official bank rate in the Private Equity industry impact industry performance... purchase to read more

     


    Industry ProductsRelated Reports

    What is the Private Equity Industry?

    Companies in this industry manage private equity funds - a type of collective investment fund that targets investment in private companies - on behalf of investors such as pension funds, insurance companies and individual investors. They generate revenue by charging management fees for their services. 

    Industry Products
    Buyouts: MBO, MBI, LBOExpansion capitalReplacement capitalVenture capital
     
    Industry Activities
    Managing private equity fundsHelping to manage portfolio companies


    Table of Contents
    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • FTSE 100
  • Official bank rate
  • Demand from pension funding
  • Business profit
  • Demand from investment trusts
  • Current Performance
  • Revenue expansion
  • Investment activity
  • Regulatory pressures
  • Shifting environment
  • Employment, enterprises and profit
  • Chart: Revenue Growth
  • Industry Outlook
  • Continual expansion
  • Investment activity
  • Future challenges
  • Table: Private Equity Industry Revenue Outlook
  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Private Equity Industry Lifecycle vs The Economy
  • Products & Markets
    Supply Chains
  • Key Buying Industries
  • Banks
  • General Insurance
  • Pension Funding
  • Consumers
  • Key Selling Industries
  • Investment Banking & Securities Brokerage
  • Stock & Commodity Exchanges
  • Products & Services
  • Buyouts: MBO, MBI, LBO
  • Expansion capital
  • Replacement capital
  • Venture capital
  • Chart: Private Equity Industry Products and Services Segmentation
  • Demand Determinants
  • Demand for investment
  • Demand for funding
  • Major Markets
  • Pension funds
  • Funds of funds
  • Banks
  • Insurance companies
  • Sovereign wealth funds
  • Private individual investors
  • Other
  • Other corporate investors
  • Chart: Major Market Segmentation for the Private Equity Industry
  • International Trade
    Business Locations
  • Chart: Business Locations by State
  • Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Rent, utilities and depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Private Equity
  • Basis of Competition
  • Internal competition
  • External competition
  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Private Equity Industry
  • Industry Globalization
    Major Companies
    The Blackstone Group LP
    Kohlberg Kravis Roberts & Co Partners LLP
  • Table: The Blackstone Group LP - financial performance
  • Table: Kohlberg Kravis Roberts & Co Partners LLP - financial performance
  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Private Equity Industry
  • Chart: Tools of the Trade: Growth Strategies for Success
  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth
  • Regulation & Policy
    Industry Assistance
    Key Statistics
  • Table: Industry Data for the Private Equity Industry
  • Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Table: Annual Percentage Change for Key Industry Data
  • Table: Key Ratios for Industry Key Data
  • Jargon & Glossary
    Assets Under Management (Aum)
  • The market value of the assets a private equity fund manages on behalf of its investors.
  • Base Cost Shift
  • A tax exemption on capital gains (or profit).
  • Collective Investment Scheme
  • A fund that pools investors' money before investing, in order to participate in a wider range of investments and to generate economies of scale in terms of transaction and management costs.
  • Leveraged Buyout (Lbo)
  • A private equity buyout funded with a high proportion of debt financing.
  • Mezzanine Capital
  • Used to fund a growth opportunity or in private business’, for the company owners to take money out of the company for other uses, or to facilitate a management buyout.
  • Portfolio Company
  • A company that a private equity firm has invested in and has in its portfolio.
  • Private Equity Fund
  • A structure into which a pool of money is raised from investors before being invested in private equity deals.

  • Why Buy this Report?
    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Private Equity:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Private Equity market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Private Equity, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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