Private Equity - Croatia | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$1.95m 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$2.04m by 2025.
The average size per deal in the Private Equity market amounts to US$278.60k 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 Croatia is experiencing minimal decline, influenced by factors such as cautious investor sentiment, limited access to capital, and ongoing economic uncertainty. These elements are affecting growth potential, yet opportunities remain for strategic investments.

Customer preferences: The Private Equity market in Croatia is witnessing a notable shift towards sustainable and socially responsible investment strategies. Increasing awareness of environmental and social issues is influencing investor preferences, prompting a rise in funds focused on green technologies and responsible business practices. Additionally, younger generations are gravitating towards startups that prioritize innovation and ethical practices, shaping a dynamic landscape for private equity that values not only financial returns but also positive societal impact.

Trends in the market: In Croatia, the Private Equity market is experiencing a significant shift towards impact investing, with an increasing number of funds dedicating resources to sustainable enterprises. The momentum is fueled by heightened public consciousness around climate change and social equity, encouraging investors to seek out opportunities in green technologies and ethical businesses. Moreover, the interest from millennials and Gen Z in startups that emphasize innovation and responsibility is reshaping the investment landscape, creating a dual focus on financial performance and positive societal outcomes that could redefine industry standards and expectations.

Local special circumstances: In Croatia, the Private Equity market is shaped by its unique geographical advantages and cultural heritage, as well as evolving regulatory frameworks. The country's picturesque landscape and focus on sustainable tourism foster investments in eco-friendly ventures, appealing to both domestic and foreign investors. Additionally, Croatian culture values community and social responsibility, further driving interest in ethical businesses. Recent regulatory changes promoting transparency and ease of doing business are enhancing investor confidence, making Croatia an attractive destination for funds prioritizing sustainable and impactful investments.

Underlying macroeconomic factors: The Private Equity market in Croatia is significantly influenced by macroeconomic factors such as central bank policies, particularly interest rates, which dictate the cost of capital. Low interest rates typically enhance the attractiveness of private equity investments by reducing borrowing costs, thereby encouraging leveraged buyouts and growth capital investments. Moreover, a stable economic environment fosters investor confidence, leading to increased capital inflows. Conversely, rising interest rates can inhibit market growth, as higher borrowing costs may limit investment opportunities. Additionally, Croatia's integration into the EU presents opportunities for accessing larger capital markets, enhancing overall market liquidity and performance.

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.