Private Equity - Algeria | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$5.01m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 11.34% 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$2.09m 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 2.44 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 Algeria is witnessing minimal decline, influenced by factors such as political instability, limited access to funding, and evolving regulatory challenges. These elements are crucial in shaping investment confidence and market dynamics.

Customer preferences: In Algeria, there is a noticeable shift towards sustainable and socially responsible investments, reflecting heightened consumer awareness of environmental and social issues. Investors are increasingly favoring companies that align with ethical practices and demonstrate a commitment to community development. Additionally, younger demographics are embracing innovation, leading to a rise in interest for tech-driven startups. This trend is reshaping the Private Equity landscape as funds seek opportunities that resonate with evolving consumer values, emphasizing transparency and sustainability.

Trends in the market: In Algeria, the Private Equity market is increasingly gravitating towards investments in sustainable and socially responsible ventures. This rising trend is underpinned by a growing consumer demand for ethical business practices and environmental stewardship. Additionally, the influx of tech-savvy young entrepreneurs is fostering a surge in interest for innovative startups, particularly in digital and green technologies. These movements are reshaping the investment landscape, compelling funds to prioritize transparency and sustainability, which not only align with consumer values but also promise long-term growth and resilience for industry stakeholders.

Local special circumstances: In Algeria, the Private Equity market is profoundly influenced by the nation’s unique socio-economic landscape and cultural heritage. The country's rich natural resources and youthful population drive a burgeoning demand for investments in sectors like renewable energy and technology. Additionally, local customs that emphasize community and social cohesion encourage private equity firms to prioritize projects that yield social benefits. Regulatory frameworks are gradually evolving to support transparency and foreign investment, fostering a more favorable environment for ethical and impactful ventures.

Underlying macroeconomic factors: The Private Equity market in Algeria is significantly shaped by macroeconomic factors, particularly central bank policies and interest rates. Low-interest rates generally enhance access to capital, making it easier for private equity firms to secure financing for investments in high-growth sectors such as renewable energy and technology. Conversely, rising interest rates can increase the cost of borrowing, potentially stifling investment activity. Additionally, Algeria's economic health, characterized by fluctuating oil revenues and efforts at diversification, influences investor confidence and market stability. The evolving regulatory landscape further cultivates an ecosystem conducive to private equity, attracting both domestic and foreign investors seeking sustainable returns.

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.