Investing in US private equity today: looking beyond the headlines to the heart of the market

Today's reflex, and what it overlooks

The concerns are legitimate. US public markets have never been so concentrated around a handful of large tech caps, at high valuations. Trade policy remains unpredictable. For a euro-based investor, currency risk comes on top of everything else.

But this reasoning equates the United States with its stock market. Yet the stock market is no longer the centre of gravity of American capitalism. Companies owned by private equity funds now number close to 13,000, compared with fewer than 5,500 listed companies. Twenty-five years ago, the ratio was the other way round⁽¹⁾.

The US also remains, by far, the world's largest private equity market. In 2025, it raised $278 billion, compared with €81 billion in Europe⁽²⁾.

Back to the birthplace of private equity

Private equity was born some forty years ago in the US mid-market, with a simple idea: invest in mid-sized companies, where value creation is most tangible. This segment remains the engine of the real economy today.

The US mid-market in figures

• More than 200,000 companies with revenues between $10M and $1B⁽³⁾
• 99% of them are not listed⁽⁴⁾
• More than 90% do not yet have a private equity shareholder⁽⁵⁾

These are founder-led and family-owned businesses, active in industry, healthcare and business services. No ETF captures them: to invest in private markets is the only way in.

Four misconceptions worth revisiting

"The US market is too expensive"

True for large listed tech stocks, not for the real economy. In the mid-market, companies valued under $100M trade at around 6.3x EBITDA at the median. Their median revenue growth reaches 14.2%⁽⁶⁾.

"Private equity is mostly about debt"

US small and mid-cap deals are financed at around 2 to 3x EBITDA⁽⁷⁾. Performance relies on operational levers: professionalising a family business, structuring its management, consolidating a fragmented sector through successive acquisitions.

"No open stock market, no exit"

Around two thirds of LBOs completed in the United States involve the mid-market⁽⁸⁾. Exits mainly take place through sales to strategic buyers or to larger funds. At a time when private equity distributions have slowed, this lower dependence on IPOs becomes a real advantage.

"This is not the right time"

Funds currently raising capital invest with a clean slate. They do not inherit portfolios built between 2019 and 2021, at a time of high valuations and abundant credit. They deploy their capital taking new realities into account: cost of financing, greater selectivity, technological disruption. The mid-market's sector positioning (healthcare, business services, industrial services) also keeps it away from the segments most exposed to rapid AI-driven disruption.

👉 To go further: American Mid-Market: The Resilience That Defies Economic Cycles

Our view: the question is not "where", but "with whom"

In this market, the decisive factor is manager selection. Among buyout funds under one billion dollars raised in the United States and Canada between 2000 and 2022, the median net IRR stands at 16.9%. Yet the dispersion between managers is considerable⁽⁹⁾.

(Source: Preqin, data as of 19/02/2025)

Being exposed to the US mid-market is therefore not enough. What matters is accessing the right managers, the best of whom are often oversubscribed, and spreading the risk across them.

Past performance is not a reliable indicator of future performance.

Investing in the United States, differently: a compelling way in

This conviction shaped our approach. Rather than betting on a single manager, Private Corner offers eligible investors, through their adviser, a single subscription giving access to a selection of 5 to 6 US mid-market buyout funds made by Neuberger. Together, these funds target a portfolio of 75 to 90 companies.

Managers are selected notably on the consistency of their track record, their alignment with investors and their discipline on leverage. This selection draws on an institutional strategic adviser active in this market for more than fifteen years.

One subscription, several managers, dozens of companies: this is an institutional investor's allocation approach, made accessible to wealth management professionals.

👉 Read the press release: Private Corner launches US Midcap Buyout Strategies, a private fund-of-funds focused on US mid-cap buyouts

Investing in private markets involves a risk of capital loss and liquidity risk. Exposure to the dollar entails currency risk. These funds are reserved for professional or eligible investors.

Conclusion: back to the heart of private equity

Investing in the United States today is not a bet on the US stock market. It is a return to the heart of private equity: a real, granular economy with little exposure to market effects, provided it is accessed with method. In private markets, performance does not come from concentration, but from the ability to invest where value creation is still being built.

Disclaimer

This is a marketing and informational communication which does not constitute investment advice, a personalised recommendation or a solicitation.

Private Corner is authorised as a portfolio management company by the AMF under number GP 20000038.

Investing in private markets and in alternative investment funds involves risks, notably a risk of capital loss, liquidity risk and a long investment horizon.

FAQ: US private equity

Sources

1. PitchBook and World Federation of Exchanges, Q3 2025
2. Annual European and US PE First Look, as of 31/12/2025
3. National Center for the Middle Market, as of 30/06/2025
4. National Center for the Middle Market, as of 01/01/2024
5. National Center for the Middle Market, "Private Equity in the Middle Market", 13/10/2025
6. GPScout, transactions 1996-2024
7. GPScout and PitchBook, 2010-2024, graphical reading
8. PitchBook, "US PE Middle Market Report", September 2025
9. Preqin, data as of 19/02/2025