Private Equity - Belgium | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$1.54bn 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$1.61bn by 2025.
The average size per deal in the Private Equity market amounts to US$26.08m 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 71.87 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 Belgium is witnessing minimal decline, influenced by factors such as economic uncertainty, shifting investor preferences, and challenges in deal sourcing. Despite these hurdles, the sector remains resilient, adapting to emerging trends and opportunities.

Customer preferences: Investors in Belgium are increasingly prioritizing sustainable and socially responsible investments, reflecting a cultural shift towards ethical consumerism. This trend is evident in the growing interest in sectors such as clean technology and renewable energy, where private equity firms are channeling funds to support environmentally focused startups. Additionally, demographic shifts toward younger, more diverse populations are pushing firms to consider innovative business models that cater to evolving lifestyle preferences, such as flexibility and digital accessibility.

Trends in the market: In Belgium, the Private Equity market is experiencing a rise in investments focused on sustainable enterprises, with firms increasingly integrating Environmental, Social, and Governance (ESG) criteria into their decision-making processes. This shift is driving capital towards sectors like green technology and sustainable agriculture, as investors seek opportunities that align with their values. Moreover, with a notable shift toward digitalization, private equity firms are exploring innovative funding models and portfolio management techniques to engage with emerging businesses that leverage technology to enhance sustainability. This trend carries significant implications for industry stakeholders, as the alignment with ethical practices may create competitive advantages and reshape investment strategies.

Local special circumstances: In Belgium, the Private Equity market is uniquely influenced by the country's strong commitment to sustainability and innovation, supported by a robust regulatory framework emphasizing ESG compliance. The presence of numerous EU institutions in Brussels fosters a culture of collaboration and access to funding for sustainable projects. Additionally, Belgium's diverse biotechnology and renewable energy sectors attract private equity investments focused on cutting-edge technologies. This blend of geographical advantages and cultural values drives a dynamic market landscape, encouraging long-term capital commitments in sustainable enterprises.

Underlying macroeconomic factors: The Private Equity market in Belgium is significantly shaped by overarching macroeconomic factors, particularly central bank policies and interest rates. Low interest rates foster an environment conducive to leveraged buyouts and growth capital investments, as they reduce borrowing costs for firms seeking to expand through private equity funding. Conversely, rising rates may tighten liquidity, making capital more expensive and potentially dampening investment activity. Furthermore, Belgium's stable economic indicators, such as GDP growth and low unemployment, enhance investor confidence, attracting both domestic and international private equity firms looking to capitalize on sustainable and innovative sectors.

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.