Private Equity - Albania | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$5.10m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 9.38% resulting in a projected total amount of US$5.58m by 2025.
The average size per deal in the Private Equity market amounts to US$2.33m in 2024.
From a global comparison perspective it is shown that the highest deal value is reached United States (US$594.00bn in 2024).
In the Private Equity market, the number of deals is expected to amount to 2.94 by 2025.

Definition:

Private equity involves partnerships that buy, manage, and eventually sell companies. These firms manage funds for institutional and accredited investors, who commit significant capital for extended periods. Private equity funds can acquire entire private or public companies or participate in buyouts with other investors, but they typically avoid holding stakes in publicly traded companies. The Private Equity market encompasses a broad range of deal types that involve acquiring equity ownership in private companies. This market typically includes leveraged buyouts (LBOs), growth capital, Carve-outs, and other forms of equity investments that target mature businesses with the potential for operational improvements and value creation. The market presented here does not include Venture Capital investments. While both Private Equity and Venture Capital involve equity stakes in companies, Venture Capital specifically focuses on high-growth potential startups, while private equity firms invest in established companies with the aim of increasing the value of these companies before selling their investment after several years.

Additional information:

The market contains the following KPIs: the deal value, the number of deals, the average deal size as well as the assets under management (AUM). Key players in this market are companies such as Blackstone, The Carlyle Group, KKR, Goldman Sachs, General Atlantic, and Warburg Pincus.

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Leveraged Buyouts (LBOs)
Growth Capital
Carve-Outs
Distressed Buyouts
Secondary Buyouts

Venture Capital
Venture Debt
Traditional bank loans
Digital capital raising

The Private Equity market in Albania has shown a minimal decline, influenced by factors such as limited access to investment opportunities, regulatory challenges, and economic uncertainty, which hinder investor confidence and market expansion prospects.

Customer preferences: Investors in Albania are increasingly seeking opportunities in sustainable and socially responsible ventures, reflecting a growing preference for businesses that prioritize environmental, social, and governance (ESG) factors. This shift is driven by a younger, more socially-conscious demographic that values ethical practices and transparency. Additionally, the rise of technology adoption among the Albanian population is prompting interest in innovative startups, particularly those in the fintech and digital services sectors, as investors look to capitalize on the digital transformation trend.

Trends in the market: In Albania, the Private Equity market is currently experiencing a surge in interest towards sustainable and socially responsible investments, particularly among younger investors who prioritize ESG factors. This trend highlights a significant shift towards ethical investment practices that not only aim for financial returns but also consider broader social impacts. Furthermore, as digital transformation accelerates, there is heightened attention on tech startups, especially in fintech and digital services. This dual focus on sustainability and innovation is reshaping investment strategies, compelling industry stakeholders to adapt by integrating ESG criteria and leveraging technology to enhance operational efficiencies.

Local special circumstances: In Albania, the Private Equity market is shaped by its unique geographical and cultural context, along with a regulatory framework that is evolving to support investment growth. The country's strategic location in the Balkans attracts foreign investors looking for access to European markets, while a rich cultural heritage fosters a strong emphasis on community-oriented projects. Additionally, the Albanian government's commitment to EU integration has led to regulatory reforms aimed at enhancing transparency and investor protection, thereby encouraging more sustainable investments in local startups and socially responsible ventures.

Underlying macroeconomic factors: The Private Equity market in Albania is significantly influenced by macroeconomic factors such as interest rates, inflation, and overall economic stability. Central bank policies play a crucial role; low interest rates can stimulate investment by reducing borrowing costs for private equity firms and their portfolio companies, fostering growth in local startups. Conversely, rising interest rates may dampen investment enthusiasm, as higher financing costs can impede business expansion and profitability. Additionally, Albania's national economic health, characterized by GDP growth and consumer spending, directly affects investor confidence, making the market more attractive for both local and foreign capital.

Data coverage:

The figures are based on deal value, number of deals, the average size of each deal, and assets under management within the Private Equity market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, and publicly available databases. In addition, we use relevant key market indicators and data from country-specific associations, such as: GDP, total investment (% of GDP), household wealth (per Adult), high income (% of population), and number of high-net-worth individuals (HNWI). This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are total investment (% of GDP), household wealth (per Adult), number of high-income persons, and number of high-net-worth individuals (HNWI).

Additional notes:

The market is updated twice a year in case market dynamics change.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

In the last decades, private equity has emerged as a dominant force in global finance, reshaping industries and driving economic growth worldwide. After the peak experienced in 2021, however, private equity activity slowed down in 2022 and 2023, due to multiple factors such as inflationary headwinds, rising interest rates, geopolitical unrest and general uncertainty. With an estimated value of nearly four trillion dollars, private equity dry capital - a term commonly used in the private equity world to refer to committed, but unallocated capital - reached unprecedented heights in 2023. A high level of this capital means that private equity firms have unspent cash reserves. Among the most influential private equity firms worldwide, the Blackstone Group is the largest in terms of funds raised.