Private Equity - Austria | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$1.82bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 4.41% resulting in a projected total amount of US$1.91bn by 2025.
The average size per deal in the Private Equity market amounts to US$130.30m 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 17.35 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 Austria is facing minimal decline, influenced by factors like economic uncertainty, fluctuating interest rates, and changing investor sentiment. Despite these challenges, strategic investments and emerging sectors show potential for future stabilization.

Customer preferences: In Austria, private equity investors are increasingly focusing on sustainable and socially responsible investments, reflecting a growing consumer preference for ethical practices. As millennials and Gen Z prioritize sustainability, businesses that demonstrate environmental stewardship and social impact are gaining traction. Additionally, the rise in e-commerce and digital services has prompted interest in technology-driven startups. This shift is reshaping the landscape, as investors seek opportunities in sectors that align with evolving consumer values and lifestyle choices.

Trends in the market: In Austria, the private equity market is experiencing a notable shift towards sustainable investing, driven by increasing demand for ethical business practices. Investors are keenly targeting companies that prioritize environmental, social, and governance (ESG) criteria, reflecting a broader societal commitment to sustainability. Furthermore, the surge in digital transformation has attracted capital towards technology startups, especially those innovating in e-commerce and digital services. This convergence of sustainability and technology is not only reshaping investment strategies but also prompting industry stakeholders to adapt, ensuring alignment with consumer values and enhancing long-term growth potential.

Local special circumstances: In Austria, the private equity market is shaped by a strong emphasis on environmental sustainability, influenced by the country’s commitment to green policies and a robust regulatory framework promoting ESG investments. The cultural affinity for social responsibility leads investors to favor companies demonstrating ethical practices. Additionally, Austria's strategic location in Central Europe fosters collaboration among tech startups, creating a vibrant ecosystem for innovation. This unique blend of local values, regulatory support, and geographical advantages drives a distinct investment landscape, attracting both domestic and international capital.

Underlying macroeconomic factors: The private equity market in Austria is significantly influenced by overarching macroeconomic factors, particularly central bank policies and interest rates. Low interest rates, driven by accommodative monetary policy, reduce borrowing costs for private equity firms, facilitating leveraged buyouts and acquisitions. This environment encourages investments in growth-oriented businesses, particularly in technology and sustainable sectors. Additionally, Austria's strong economic health, reflected in stable GDP growth and low unemployment, boosts investor confidence. Global economic trends, such as increasing demand for sustainable investments and digital transformation, further enhance opportunities for private equity, attracting both local and international capital to the market.

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.