Global Market: A Legacy of Growth

The private equity industry has seen remarkable growth since its inception in the mid-20th century, with its real momentum beginning in the 1980s as institutional investors became more engaged.

Fast forward to 2024, private equity is a colossal force in global finance:

• Capital Raised: Over $5 trillion, compared to just $50 billion in its early days.
• Market Size: Estimated at $10 trillion, a significant leap from $100 billion in the 1980s.
• Regional Contribution:
  • North America: 50% of capital.
  • Europe: 30%.
  • Asia: 15%.

With more than 8,000 firms globally, private equity has reshaped global investment landscapes, channeling funds into industries like:

• Technology: 35%.
• Healthcare: 20%.
• Consumer Goods 15%.
• Industrials & ESG 10% each.

The focus on sustainable investments and digital transformation reflects the industry's adaptability and forward-looking approach.

Private equity’s evolution showcases its pivotal role in driving global economic growth and innovation.

Here are some of the top global private equity funds:

Fund Manager	Founded	Amout Raised($m)	Focus Sector
Blackstone	1985	125,612	Real estate, energy, technology, healthcare
KKR	1976	103,713	Energy, infrastructure, real estate
EQT	1976	101,660	Healthcare, industrials, consumer goods
Thoma Bravo	2008	74,093	Software, cybersecurity, technology
The Carlyle Group	1987	69,681	Aerospace, healthcare, energy
The Carlyle Group	1987	69,681	Aerospace, healthcare, energy
TPG Capital	1992	54,965	Healthcare, technology, consumer and retail, financial services, and industrials
Advent International	1984	52,939	Business and financial services, healthcare, industrial, retail, consumer, leisure and technology
Hg	1989	51,046	Software and service businesses
General Atlantic	1980	48,696	Technology, healthcare, consumer, financial services, and business services
Warburg Pincus	1966	48,534	Consumer, Energy, Financial Services, Healthcare, Industrial & Business Services, Real Estate, and Technology

Domestic Market: Private Equity in Nepal

Nepal’s private equity (PE) and venture capital (VC) market started gaining traction in 2012, addressing a gap left by traditional banks that often required collateral-based lending. Early pioneers like Business Oxygen (BO2) and Dolma Impact Fund led the way, supported by development finance institutions (DFIs).

The game changed in 2019 with the Specialized Investment Fund Regulation (SIF) introduced by the Securities Board of Nepal (SEBON). This regulation:

• Established a formal framework for PE/VC activities.
• Enabled fund managers with Rs 20 million in paid-up capital to obtain licenses.

Investment Landscape

From 2012 to 2022, Nepal’s PE/VC sector saw:

• 46% in renewable energy.
• 23.6% in IT.

By October 2024, Nepal had:

• 22 private equity funds managing over 30 companies.
• $100 million in capital allocated for growth-focused endeavors.
• Forecasted growth: $83.7 million in capital raise by 2024.

Nepal’s private equity market is emerging as a vital pillar for economic innovation and growth.