There are more Private Equity funds than McDonalds restaurants in the US.
This comment from KKR partner Alisa Wood, made the rounds last week … and the numbers are staggering.
According to the latest SEC data, there are 24,885 Private Equity funds in the US (even more than the 19,000 quoted in the original comment!)
This compares to “only” 14,300 McDonalds locations across the country.
These funds are managed by 1,939 Private Equity firms, which collectively hold $7.9 trillion in assets.
Both of these figures have grown since 2020, with the number of Private Equity firms growing by over 40%, and the value of their assets doubling over the 5 year period.
The biggest firms are getting even bigger, with the largest firms (‘Section 4’) increasing their share of asset value from 73% to 80% from 2020.
While assets are consolidating among fewer top-tier firms, rising average deal values suggest these players are competing more aggressively for premium deals.
With rising competition at the top-end, it’ll be interesting to see whether smaller deals become the new Private Equity battleground.