Private Equity - Argentina | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$441.00m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 6.51% resulting in a projected total amount of US$469.70m by 2025.
The average size per deal in the Private Equity market amounts to US$441.00m 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 1.58 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.

For more information on the data displayed, use the info button right next to the boxes.

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 Argentina is facing minimal decline, influenced by factors like economic instability, fluctuating currency values, and cautious investor sentiment. Despite these challenges, there remains a steady interest in local ventures and growth opportunities.

Customer preferences: The Private Equity market in Argentina is experiencing a notable shift as investors increasingly prioritize sustainable and socially responsible ventures. This trend is being driven by a younger, more environmentally conscious demographic that values ethical practices and transparency in business operations. Additionally, the growing interest in technology-driven startups reflects a cultural shift towards digital innovation and e-commerce solutions. As lifestyle factors evolve, there is a rising demand for businesses that integrate social impact and technological advancement, guiding investment decisions in the local market.

Trends in the market: In Argentina, the Private Equity market is seeing a surge in investments directed towards sustainable and socially responsible businesses, as investors respond to the demands of a younger, environmentally aware consumer base. This shift is characterized by a growing focus on startups that not only prioritize ethical practices but also leverage technology to foster innovation. As digital ecosystems expand, there is an increasing appetite for ventures that merge social impact with technological advancements. This trend signifies a transformative phase for industry stakeholders, encouraging them to adapt their investment strategies to align with evolving consumer values and expectations, ultimately shaping a more responsible and resilient market landscape.

Local special circumstances: In Argentina, the Private Equity market is influenced by a combination of economic volatility and a rich cultural emphasis on social connections. Investors are increasingly drawn to ventures that integrate local traditions and practices into their business models, tapping into the country's strong community spirit. Additionally, regulatory frameworks are evolving, with a focus on encouraging sustainable practices, which attracts international capital. This unique blend of cultural values and regulatory support is shaping a distinctive investment landscape, fostering growth in socially responsible enterprises that resonate with local consumers.

Underlying macroeconomic factors: The Private Equity market in Argentina is significantly influenced by macroeconomic factors such as central bank policies, particularly interest rates, currency stability, and inflation. Elevated interest rates can deter investments, as the cost of capital rises, making leveraged buyouts less attractive. Conversely, a lower rate environment can encourage borrowing, enabling firms to pursue more aggressive growth strategies. Additionally, fluctuating inflation rates and currency devaluation impact investor confidence and valuation metrics, leading to a more cautious approach in deal-making. Furthermore, the alignment of fiscal policies with international market trends plays a crucial role in attracting foreign investment, enhancing the overall dynamism of the Private Equity landscape.

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.