Library:
Madrid
Paris Montparnasse
Paris Champerret
London
Berlin
Turin
This research project delves into the dynamic world of the private equity market, focusing on
its structure, strategies, players, historical performance, latest trends, and challenges. The aim
of this thesis is to offer insights and demystifying the complexities of the private equity market,
highlighting its role in fostering innovation, driving economic growth, and offering investors a
unique risk and return profile. The research is supported by both academic references, global
market data and analysis based on professional databases including Pitchbook.
In the first part, the PE market is extensively analysed to provide a comprehensive overview of
the sector’s foundations. It details the roles of the different players, the investors’ objectives,
the characteristics that distinguish it from the public equity market and explores the different
investment strategies such as venture capital, buyouts, and growth capital.
Private equity performance is measured using different metrics (quarterly returns, volatility,
horizon IRR) and compared with public markets. From the study it is evident that the private
equity market outperformed the public equity market over the past decade even in period of
uncertainty and market downturns.
The study also explores the future trajectory of the private equity market by analysing the
current challenges and identifying emerging trends such as Environmental, Social, and
Governance (ESG) investments, the increasing role of artificial intelligence, and the importance
of diversity within the industry. One of the results of this part show that data does not support
the popular assumption that the PE world is completely male dominated. Globally, PE firms
have almost achieved gender parity in entry- level roles.
Overall, this research findings suggest that despite the inherent risks and the recent slowdown
in fundraising and deal-making activities, the private equity market remains a key player in the
global financial ecosystem, capable of delivering sustainable and superior returns while
contributing to economic growth and innovation.
