Private Equity Co-Investment Capital Surges to $10.3 Billion by 2022

Private equity and private credit investments are undergoing significant changes that impact both investors and firms involved. Investors entering private credit markets should prioritize the experience and skills of the management teams to navigate risks and market cycles effectively, as emphasized by industry experts in Australia. Meanwhile, technological and regulatory innovations are democratizing private equity investments, allowing smaller investors who were previously excluded due to high minimum investments, accreditation requirements, and illiquidity to gain access, albeit with awareness of inherent risks. Agencies receiving private equity backing face pressures to scale rapidly and meet high growth expectations while balancing cultural shifts and financial oversight, signaling a transformation in operational strategies within the sector. Legislative developments, such as the recent House-passed One Big Beautiful Bill (BBB), currently do not alter key tax treatments for private equity, including carried interest and capital gains rates, providing a stable tax environment for funds and investors for now. Additionally, the co-investment market in private equity is expanding, offering investors direct exposure with reduced fees and greater transparency, which is becoming an increasingly important strategy amid fundraising challenges and growing global private equity assets.