Private Equity - Bolivia | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$5.45m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 9.26% resulting in a projected total amount of US$5.96m by 2025.
The average size per deal in the Private Equity market amounts to US$2.10m 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 3.62 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 Bolivia is witnessing a minimal decline, influenced by factors such as economic uncertainty, limited access to capital, and a cautious investment climate, which collectively hinder robust growth and investor confidence in the region.

Customer preferences: The Private Equity market in Bolivia is observing a shift towards investments in sustainable and socially responsible ventures, as consumers become increasingly aware of environmental and social issues. This growing consciousness is prompting private equity firms to seek opportunities in sectors like renewable energy, eco-friendly products, and community-driven projects. Additionally, younger demographics, who prioritize ethical consumption, are influencing investment strategies, encouraging firms to integrate cultural relevance and societal impact into their portfolios to align with evolving consumer values.

Trends in the market: In Bolivia, the Private Equity market is experiencing a notable trend towards investments in sustainable agriculture and conservation initiatives, as stakeholders recognize the importance of environmental stewardship and food security. Concurrently, there is a rising interest in social enterprises that prioritize community development and support local economies. The shift is also fueled by increased regulatory incentives for eco-friendly practices. These trends are significant as they not only align investments with evolving consumer preferences but also promise long-term financial returns, enhancing the resilience of local communities and ecosystems.

Local special circumstances: In Bolivia, the Private Equity market is shaped by its rich biodiversity and unique cultural heritage, driving investments toward sustainable agriculture and eco-tourism initiatives. The country’s diverse ecosystems, from the Andes to the Amazon, create opportunities for conservation projects that attract eco-conscious investors. Additionally, Bolivia's existing community-focused cooperatives foster a collaborative environment for social enterprises, enhancing local economies. Regulatory frameworks supporting sustainable practices further incentivize investments, distinguishing Bolivia from other markets and aligning financial returns with environmental and social impact.

Underlying macroeconomic factors: The Private Equity market in Bolivia is significantly influenced by overarching macroeconomic factors such as central bank policies, particularly interest rates, which shape the cost of capital and investment climate. Favorable interest rates lower borrowing costs, encouraging private equity firms to finance sustainable initiatives in sectors like agriculture and eco-tourism. Conversely, rising rates can tighten liquidity, making it challenging for firms to raise funds. Furthermore, global economic trends, such as commodity prices and foreign investment flows, coupled with Bolivia's economic health and fiscal policies, directly impact market performance, driving both investor confidence and the potential for returns in 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.