mckinsey-global-private-markets-review-2020-v4
McKinsey’s 2020 Global Private Markets Review (Feb 2020) analyzes a decade of rapid growth in private markets and the state of the industry through 2019. Key findings: private markets AUM reached $6.5 trillion in 2019 (up 10% that year and ~170% over the decade); fundraising in 2019 was $919 billion (the second-highest year); dry powder hit a record ~$2.3 trillion (H1 2019), with PE accounting for ~$1.4 trillion. Deal volume plateaued (~$1.47 trillion in PE) while US buyout multiples and leverage rose (US buyout multiples near ~12x, pro forma leverage ~6.6x). Strategic themes for the new decade include rising importance of ESG, continued shortcomings on diversity and inclusion (women ~20% of private-markets employees; low senior representation), and a growing but uneven adoption of digital and analytics.
Questions this document answers
$6.5 trillion (2019, +10% year)
$919 billion in 2019 fundraising (excludes secondaries and funds-of-funds)
Approximately $2.3 trillion of dry powder (H1 2019); PE dry powder about $1.4 trillion
Approximately $1.47 trillion in PE deal volume (2019)
US buyout purchase multiples near 12x (two-year trailing EV/EBITDA) and pro forma leverage ~6.6x (2019)