Private Equity - Bulgaria | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$936.00k 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$977.30k by 2025.
The average size per deal in the Private Equity market amounts to US$133.70k 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 7.13 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 Bulgaria has faced minimal decline, influenced by factors such as economic uncertainty, limited investment opportunities, and evolving regulatory frameworks. Despite challenges, the sector continues to attract interest from both local and international investors.

Customer preferences: Investors in the Bulgarian Private Equity market are increasingly drawn to sustainable and socially responsible ventures, reflecting a growing consumer preference for environmentally friendly and ethically managed businesses. This trend is influenced by a younger demographic that prioritizes sustainability and corporate social responsibility in their purchasing decisions. Additionally, the rise of digital innovation has spurred interest in tech startups, as consumers increasingly favor solutions that enhance convenience and connectivity in daily life, prompting investors to adapt their strategies accordingly.

Trends in the market: In Bulgaria, the Private Equity market is experiencing a significant shift towards investments in sustainable and socially responsible enterprises. Investors are increasingly attracted to ventures that align with environmentally conscious practices, reflecting a broader consumer demand for ethical business operations. This trend is further emphasized by the millennial and Gen Z populations, who prioritize sustainability in their investment preferences. Additionally, the surge in digital transformation has ignited interest in technology startups focused on innovative solutions, compelling stakeholders to realign their strategies to capture opportunities in this evolving landscape and meet consumer expectations for responsible and tech-driven options.

Local special circumstances: In Bulgaria, the Private Equity market is uniquely shaped by its strategic geographical location as a gateway to both Eastern and Western European markets, facilitating cross-border investments. Culturally, the strong emphasis on community and family-owned businesses fosters a supportive environment for investments in local enterprises. Additionally, the regulatory framework has evolved to accommodate sustainable business practices, with incentives for green investments. These factors contribute to a dynamic investment landscape that encourages a focus on environmentally and socially responsible ventures, setting Bulgaria apart from other markets.

Underlying macroeconomic factors: The Private Equity market in Bulgaria is significantly influenced by macroeconomic factors, particularly through central bank policies and interest rates. The Bulgarian National Bank's monetary policy, including its stance on interest rates, plays a crucial role in shaping investment dynamics. Lower interest rates reduce the cost of borrowing, making it easier for private equity firms to finance acquisitions and invest in local businesses. Additionally, favorable liquidity conditions encourage investments in growth-oriented sectors. Conversely, rising interest rates could lead to tighter financial conditions, dampening investor confidence and slowing the pace of deal-making. Overall, the interplay between central bank policy and market conditions directly impacts the attractiveness of the private equity landscape in Bulgaria.

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.