Private Equity - Cyprus | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$6.70m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 19.55% resulting in a projected total amount of US$8.01m by 2025.
The average size per deal in the Private Equity market amounts to US$1.91m 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 3.41 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 Cyprus has faced minimal decline, influenced by factors such as economic uncertainty, regulatory challenges, and limited access to funding. However, investor interest remains steady, driven by emerging sectors and potential returns in the region.

Customer preferences: Investors in the Private Equity market in Cyprus are increasingly focusing on sustainable and socially responsible businesses, reflecting a broader consumer trend towards ethical consumption. There is growing interest in companies that prioritize environmental, social, and governance (ESG) factors, as younger demographics become more influential in market dynamics. Additionally, the rise of digital transformation is prompting investments in tech-driven startups, particularly in fintech and e-commerce, appealing to a populace that values convenience and innovation.

Trends in the market: In Cyprus, the Private Equity market is experiencing a shift towards investments in sustainable and socially responsible enterprises, reflecting the rising consumer preference for ethical business practices. This trend signifies a growing alignment between investor priorities and broader societal values, particularly as younger investors increasingly advocate for environmental, social, and governance (ESG) criteria. Furthermore, the acceleration of digital transformation is driving capital towards tech-driven startups, especially in fintech and e-commerce sectors, which are poised to capitalize on a population that embraces innovation and convenience, thus reshaping the investment landscape for industry stakeholders.

Local special circumstances: In Cyprus, the Private Equity market is influenced by its strategic geographical location at the crossroads of Europe, Asia, and Africa, fostering a diverse investment landscape. The island's rich cultural heritage and welcoming business environment attract international investors, particularly in sectors like tourism and real estate. Moreover, the regulatory framework, shaped by EU standards, enhances investor confidence while encouraging sustainable practices. This combination of local culture, geographic advantages, and robust regulations positions Cyprus as an emerging hub for innovative ventures, particularly in the tech sector.

Underlying macroeconomic factors: The growth of the Private Equity market in Cyprus is significantly influenced by macroeconomic factors, particularly central bank policies and interest rates. Low-interest rates facilitate access to capital, enabling private equity firms to finance acquisitions and expansions, thereby fueling investment activities in various sectors. Additionally, favorable monetary policies enhance liquidity, which is crucial for attracting international investors. As global economic conditions shift, interest rate adjustments may also affect investor sentiment and risk appetite, impacting deal-making strategies. Moreover, economic stability and growth metrics in Cyprus further bolster investor confidence, creating a conducive environment for private equity investments.

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.