Key Takeaways
- • US private equity AUM reached $3.128 trillion as of September 2024, the highest level since December 2020, reflecting robust five-year growth across the sector.
- • Thirty-seven US private equity and venture capital firms more than doubled their AUM between 2022 and 2023, with median AUM growth of 8%, demonstrating accelerating consolidation among mid-market players.
- • One Madison Group LLC led fast-growing firms with a 3,119% AUM increase to $6.08 billion in 2023 (from $189 million in 2022), with a separately managed account valued at $6 billion as of April 2024.
- • Fee-based incentive structures drive aggressive AUM expansion: according to HEC Paris professor Oliver Gottschalg, 100% AUM growth in three years is extreme but structurally embedded in buyout fund economics, as managers earn management fees on assets under management.
- • Most high-growth firms operated below $1 billion in AUM in 2022, with exceptions including CIVC Partners LP, Aquarian Holdings Investment Management LLC, and Multicoin Capital Management LLC.
Summary
US private equity assets under management surged to $3.128 trillion as of September 2024, according to S&P Global Market Intelligence data, marking the sector's strongest position since December 2020. This milestone reflects sustained five-year growth momentum across the industry, signaling robust capital deployment and investor confidence in private markets despite macroeconomic headwinds.
The growth trajectory is particularly pronounced among emerging and mid-market firms. Between 2022 and 2023, 37 SEC-registered US private equity and venture capital firms more than doubled their AUM, with a median AUM growth rate of 8%. The majority of these firms operated below $1 billion in AUM in 2022, positioning them as growth-stage managers capturing increased allocations from institutional investors. Notable exceptions included CIVC Partners LP, Aquarian Holdings Investment Management LLC, and Multicoin Capital Management LLC, which entered this cohort as larger platforms.
One Madison Group LLC exemplified this explosive expansion, achieving a 3,119% growth rate to reach $6.08 billion in AUM in 2023 from $189 million in 2022. The firm, which focuses on industrials, consumer discretionary, and consumer staples, subsequently reported a separately managed account valued at $6 billion in its Form ADV filing in April 2024. The median AUM across the sector remained relatively stable year-over-year, at $946 million in 2023 versus $954 million in 2022, indicating that growth concentrated among outperformers rather than broad-based expansion.
According to Oliver Gottschalg, professor at HEC Paris Business School and researcher on global private equity performance, aggressive AUM growth targets are embedded in buyout fund economics. "100% AUM growth in three years is extreme, but it is a structural feature of many buyout funds," Gottschalg noted. The incentive structure is clear: private equity managers derive substantial management fee revenue directly from assets under management, creating powerful motivations to pursue rapid AUM expansion alongside investment performance. This structural dynamic continues to shape capital allocation patterns and competitive positioning within the US private equity market.
The growth trajectory is particularly pronounced among emerging and mid-market firms. Between 2022 and 2023, 37 SEC-registered US private equity and venture capital firms more than doubled their AUM, with a median AUM growth rate of 8%. The majority of these firms operated below $1 billion in AUM in 2022, positioning them as growth-stage managers capturing increased allocations from institutional investors. Notable exceptions included CIVC Partners LP, Aquarian Holdings Investment Management LLC, and Multicoin Capital Management LLC, which entered this cohort as larger platforms.
One Madison Group LLC exemplified this explosive expansion, achieving a 3,119% growth rate to reach $6.08 billion in AUM in 2023 from $189 million in 2022. The firm, which focuses on industrials, consumer discretionary, and consumer staples, subsequently reported a separately managed account valued at $6 billion in its Form ADV filing in April 2024. The median AUM across the sector remained relatively stable year-over-year, at $946 million in 2023 versus $954 million in 2022, indicating that growth concentrated among outperformers rather than broad-based expansion.
According to Oliver Gottschalg, professor at HEC Paris Business School and researcher on global private equity performance, aggressive AUM growth targets are embedded in buyout fund economics. "100% AUM growth in three years is extreme, but it is a structural feature of many buyout funds," Gottschalg noted. The incentive structure is clear: private equity managers derive substantial management fee revenue directly from assets under management, creating powerful motivations to pursue rapid AUM expansion alongside investment performance. This structural dynamic continues to shape capital allocation patterns and competitive positioning within the US private equity market.
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