Private Equity - Cuba | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$5.77m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 11.72% resulting in a projected total amount of US$6.44m by 2025.
The average size per deal in the Private Equity market amounts to US$1.86m 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 5.09 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 Cuba is currently facing a subdued decline, influenced by limited investment opportunities, regulatory challenges, and economic constraints. These factors hinder growth potential and deter foreign engagement in the market.

Customer preferences: Investors in the Cuban Private Equity market are witnessing a growing interest in sustainable and socially responsible businesses, reflecting a shift in consumer preferences towards ethical consumption. This trend is influenced by a younger demographic that values environmental impact and community engagement. Furthermore, as tourism gradually recovers, there’s an emerging demand for unique local experiences, encouraging investments in cultural and eco-friendly ventures. This evolving mindset presents opportunities for innovative start-ups that align with these values, despite the overall market challenges.

Trends in the market: In Cuba, the Private Equity market is experiencing an increased focus on impact investing, with investors prioritizing enterprises that promote social and environmental welfare. This trend is fueled by a burgeoning young population that advocates for sustainable development and ethical business practices. The revival of tourism is further driving interest in investments that enhance local culture and conservation efforts. Consequently, industry stakeholders are urged to adapt their strategies to capitalize on this shift, fostering innovation and supporting start-ups that align with these evolving consumer values.

Local special circumstances: In Cuba, the Private Equity market is influenced by the island's unique socio-economic landscape and historical context. The state-dominated economy is gradually opening up, presenting opportunities for private investments, particularly in sectors like tourism and sustainable agriculture. Cultural pride in local heritage drives demand for businesses that honor traditional practices while embracing innovation. Additionally, regulatory reforms aimed at encouraging entrepreneurship are drawing more foreign investors. These factors create a distinctive environment where impact-focused investments can flourish, aligning financial returns with community development.

Underlying macroeconomic factors: The Private Equity market in Cuba is shaped by macroeconomic factors such as central bank policies, particularly interest rates, which influence borrowing costs and investment climates. Low interest rates can encourage greater capital deployment into private ventures, fostering entrepreneurial activity in sectors like tourism and agriculture. Conversely, rising rates may dampen investment enthusiasm, as higher borrowing costs deter risk-taking. Additionally, global economic trends, such as shifts in commodity prices and foreign direct investment flows, also play a significant role in shaping investor sentiment and market dynamics, impacting overall performance in Cuba's evolving economic 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.