Private Equity

Private equity firms worldwide managed approximately $8 trillion in assets as of March 2026 (up from $2.83 trillion in June 2017), according to Praxis Rock Advisors. “Private equity remains on a cautious path to recovery after a challenging period marked by unsold asset backlogs and muted deal activity,” according to Preqin’s summary of its 2026 Global Reports. (Bain & Company reports that the PE industry had a backlog of at least 31,000 companies valued at $3.7 trillion in late 2025.) The alternative investment research firm reports that worldwide assets under management in the private equity sector are “projected to approach $12 trillion by 2030, supported by interest rates easing, narrowing valuation gaps, and a pivot from public to private allocations. While exit challenges persist—80 percent of investors in Preqin’s November 2025 survey cite this as a top concern—most plan to maintain or increase private equity allocations long term. Recent trends show fewer but larger transactions, driven by established managers focusing on high-conviction deals. Private wealth channels are gaining traction, fueled by new private markets’ products and a generational wealth transfer. Despite short-term headwinds and fundraising pressures, substantial dry powder positions the industry for future dealmaking. Fundraising is expected to accelerate from 2027 onward.”

Opportunities should be best at large, well-known investment houses because investors are shying away from perceived risky investments with smaller firms. According to Preqin, “the largest, brand-name managers are receiving the majority of investor commitments, with smaller managers—particularly first-time funds—finding it difficult to raise capital.” Hugh MacArthur, global head of Bain & Company’s Private Equity practice, says that “investor enthusiasm for private equity endures, leaving the industry awash with cash. This is both a blessing and a curse. Funds have ample money to spend, but the competition for deals is fierce." Despite the recent fundraising downturn, private equity firms had $1.3 trillion in dry powder in early 2026 that could be used in dealmaking.

The global research firm IBISWorld reports that the “private equity, hedge funds, and investment vehicles industry continues to become an increasingly integral part of institutional investor portfolios and a mainstream part of the asset management market,” and that it is increasingly becoming a global industry due to the “rapid growth in assets under management due to rising global wealth, lower international financial trading barriers, a broadening global investor base, and an increase in the number of larger alternative asset firms that operate on a global basis.”

Demand continues for experienced and skilled private equity professionals—although there is strong competition for jobs. Employment opportunities for financial and investment analysts are expected to increase 6 percent from 2024 to 2034, according to the U.S. Department of Labor, or faster than the average for all careers. Employment for analysts who work with funds, trusts, and other financial vehicles will grow 12.8 percent during this same time span.

The executive search firm Magellan Advisory Partners identified the following “hot hiring areas” in its report, Private Equity Hiring H1 2025 and Beyond:

• Deal Origination: Magellan says that “firms are building out dedicated deal sourcing teams as they seek an edge in a more selective dealmaking environment.”
• Fundraising, Investor Relations, and Marketing: Private equity firms are facing a challenging fundraising climate, which is prompting them to “bring in people who can broaden their investor base and manage limited partner relationships proactively.”
• Portfolio Operations and Value-Creation: “Firms are expanding these value creation teams, recognizing that in a slower exit environment, operational gains account for nearly half of value growth.”
• Sector Specialists and Tech-Savvy: Firms are seeking hires with extensive industry expertise (e.g., artificial intelligence, healthcare, clean energy). Magellan says that “leaders who are fluent in technology and AI are sought for both investment and portfolio roles, as firms double down on digital transformation.”

In North America specifically, Magellan reports that PE firms are diversifying their investment strategies, which has translated into increased hiring of private credit and credit-specialist hires to build direct lending arms. “Moreover, technology and data roles gained ground—a number of North American funds hired data scientists, analytics officers, or chief technology officer–type roles in H1 2025, aiming to harness AI and big data in investment decision-making.”  

Many people will continue to be attracted to the industry as a result of its perceived prestige and the high salaries earned by PE professionals. Salaries for private equity firm managers rank among the highest in any industry. Eighty-seven percent of private equity professionals who were surveyed for the 2023 Private Equity and Venture Capital Compensation Report earned from $151,000 to $1 million annually. Earnings vary by the size of the firm, with those at large firms earning more than those at smaller firms. New hires start in the $90,000 to $120,000 range.

Compensation and other perks remains an important issue in the PE industry, as managers seek to retain employees and attract new hires who also have many well-paying prospects available in the hedge fund, investment banking, venture capital, and other sectors. “Improving compensation continues to be a major point of leverage for all firms to both attract and retain new and existing employees,” according to the 2023 Global Private Equity Survey from EY. “Beyond compensation, private equity firms are pulling the same levers (e.g., flexibility, expanding job responsibilities, visibility with management and inclusion), with some subtle differences. For example, larger organizations are relying on promotions to a lesser degree and instead focusing on improving the suite of wellness and fringe benefits offered to employees. Smaller firms, due to size and ability, have found greater success in making employees feel appreciated by providing access and visibility to firm leaders.”

The private equity space is undergoing immense change. The storied firms that blazed the trail for private equity investing in the 1970s, 1980s, and 1990s are now up against stiff competition from investment banks, investment advisory firms (IAF), and hedge funds (such as Two Sigma Investments). Some non-PE entities are partnering with private equity firms to do deals. For example, the Vanguard Group, a large IAF, has partnered with HarborVest (which has been in the private equity industry for more than 40 years).

There will always be a need for private equity investing—and, thus, for private equity firms. Few other classes of investment can produce the kinds of returns that a well-run private equity fund can achieve. For institutional investors, private equity investing can unlock double-digit returns that can’t be attained with most other investments. Private equity investing also remains less tied to the vagaries of the stock market, and therefore it provides strong returns over time that only the best bull markets can match.

When it comes right down to it, a firm such as Blackstone, KKR, Carlyle, or Bain is just far better equipped—in money, experience, and ambition—to make private equity investing work. Hedge funds may dabble, and money-center banks and investment banks may open and close divisions based on ups and downs in the market, but most large private equity firms have remained steady through all kinds of economic conditions, gathering experience and knowledge that dilettante players simply don’t have.

And for the foreseeable future, there will always be companies open to a private buyout. If the demands on public companies were great during the bull market from 2003 to mid-2007, they are piling on even higher in today’s tense business environment. Quarterly revenue and earnings targets must be met, and stock buybacks and dividends are critical—stocks have been pummeled for even the slightest hint of weakness in earnings, and buybacks and dividends have become more prevalent as companies attempt to appease shareholders.