Private Equity - Cambodia | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$4.29m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 10.95% resulting in a projected total amount of US$4.76m by 2025.
The average size per deal in the Private Equity market amounts to US$2.44m 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 1.79 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.

For more information on the data displayed, use the info button right next to the boxes.

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 Cambodia is facing minimal decline, influenced by factors such as economic uncertainty, limited investment opportunities, and evolving regulatory frameworks, which collectively impact investor confidence and growth potential in the sector.

Customer preferences: In Cambodia, there is a noticeable shift in investor preferences towards sectors that align with sustainable development and social impact. As the younger demographic becomes more involved in economic decision-making, there is growing interest in businesses that prioritize environmental sustainability, ethical practices, and community engagement. Additionally, as urbanization continues, investments in technology and e-commerce are gaining traction, reflecting changing consumer habits and the demand for online services, indicative of an evolving market landscape that prioritizes innovation and social responsibility.

Trends in the market: In Cambodia, the Private Equity market is increasingly gravitating towards sectors that emphasize sustainable development and social impact, with investors keen on supporting businesses that demonstrate ethical practices and community involvement. As urbanization accelerates, there's a discernible uptick in investments directed at technology and e-commerce, reflecting a shift in consumer behavior towards digital solutions. This trend not only highlights a growing demand for innovation but also signals potential shifts in market dynamics, encouraging industry stakeholders to adopt sustainable practices and adapt to the evolving preferences of a socially conscious consumer base.

Local special circumstances: In Cambodia, the Private Equity market is shaped by its unique blend of cultural heritage and regulatory landscape, fostering a focus on community-driven investments. The emphasis on sustainable tourism and agriculture reflects the country's rich natural resources and traditional practices. Additionally, the government has been incentivizing foreign investments through favorable policies, creating a conducive environment for startups. This combination of local values and supportive regulations encourages investors to align with businesses that prioritize social impact, thus distinguishing Cambodia from other emerging markets.

Underlying macroeconomic factors: The Private Equity market in Cambodia is significantly influenced by macroeconomic factors, particularly central bank policies and interest rates. Low interest rates, driven by the National Bank of Cambodia's accommodative monetary policy, facilitate cheaper borrowing for businesses, enhancing the attractiveness of private equity investments. Additionally, the global economic climate, characterized by fluctuating investment flows and currency stability, further impacts investor confidence. Strong national economic growth, coupled with fiscal policies aimed at stimulating sectors such as agriculture and tourism, creates favorable conditions for private equity, fostering an environment ripe for innovation and community-focused ventures.

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.