Private Equity - Botswana | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$3.74m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 11.06% resulting in a projected total amount of US$4.15m by 2025.
The average size per deal in the Private Equity market amounts to US$2.89m 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 1.32 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 Botswana has seen minimal decline, influenced by factors such as cautious investor sentiment, limited access to capital, and economic fluctuations. Despite these challenges, growing entrepreneurial ventures present potential opportunities for future growth.

Customer preferences: Investors in Botswana's Private Equity market are increasingly focusing on sectors that resonate with the country's cultural values and shifting demographics. There is a noticeable rise in demand for sustainable and socially responsible investments as younger entrepreneurs prioritize ethical business practices and community impact. Additionally, as urbanization accelerates, consumer preferences are leaning towards innovative solutions in agriculture and tech-driven services, reflecting a blend of traditional values with modern lifestyles that appeal to both local and international investors.

Trends in the market: In Botswana, the Private Equity market is experiencing a shift towards investments in sustainable industries, particularly in agriculture and technology. Investors are prioritizing ventures that align with the values of social responsibility and environmental sustainability, responding to the demands of a younger, socially conscious population. Additionally, the rise of urbanization is fostering a preference for tech-driven solutions that enhance traditional practices. This trajectory indicates a significant realignment of investment priorities, encouraging stakeholders to innovate and adapt, ultimately enhancing community resilience and economic growth.

Local special circumstances: In Botswana, the Private Equity market is uniquely shaped by its geographical diversity and a strong cultural emphasis on community and sustainability. The country’s arid regions and abundant natural resources drive investments towards water-efficient agricultural technologies and renewable energy solutions. Culturally, the emphasis on social cohesion motivates investors to support ventures that benefit local communities, particularly in rural areas. Additionally, regulatory frameworks are increasingly favorable, promoting private sector involvement in sustainable initiatives, which further enhances the appeal of investments in this evolving market landscape.

Underlying macroeconomic factors: The Private Equity market in Botswana is significantly influenced by macroeconomic factors, particularly central bank policies and interest rates. As the Bank of Botswana adjusts interest rates, the cost of capital for private equity investments fluctuates, directly impacting deal flow and valuations. Lower interest rates typically enhance access to financing, encouraging more investment in local ventures focused on sustainability and community development. Conversely, rising rates may limit borrowing capacity, dampening investor enthusiasm. Additionally, broader global economic trends, such as commodity price fluctuations and trade dynamics, further shape investor sentiment and market performance, as they affect local businesses' profitability and growth potential.

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.