Private Equity - Czechia | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$177.90m 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$185.80m by 2025.
The average size per deal in the Private Equity market amounts to US$10.47m 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 20.75 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 Czechia has shown minimal decline, influenced by factors such as cautious investor sentiment, regulatory changes, and market saturation. Despite challenges, ongoing interest in innovative sectors may provide opportunities for future stabilization.

Customer preferences: The Private Equity market in Czechia is witnessing a shift towards sustainable investing, reflecting consumers' growing awareness of environmental and social governance (ESG) issues. Investors are increasingly favoring companies that prioritize sustainability, prompting a rise in funds dedicated to green technologies and socially responsible initiatives. Additionally, there is a notable interest in tech-focused startups, driven by a younger, more tech-savvy demographic seeking innovation that aligns with their lifestyle and values, which is reshaping investment strategies within the market.

Trends in the market: In Czechia, the Private Equity market is undergoing a significant transformation as investors increasingly pivot towards sustainable investment strategies. This shift is driven by a heightened emphasis on environmental, social, and governance (ESG) criteria, influencing fund allocations toward companies that implement sustainable practices. Concurrently, there is an surge in investments targeting technology-driven startups, spurred by a younger demographic eager for innovation that resonates with their values. These trends not only reflect changing investor preferences but also hold implications for industry stakeholders, as aligning with sustainability can enhance brand reputation and attract a broader customer base.

Local special circumstances: In Czechia, the Private Equity market is uniquely shaped by the country's strategic location in Central Europe, facilitating cross-border investments and access to emerging markets. Culturally, there is a growing appreciation for corporate social responsibility, pushing investors to favor firms prioritizing sustainable development. Additionally, the regulatory framework, promoted by EU sustainability directives, mandates increased transparency and accountability, encouraging fund managers to adopt ESG practices. These local factors synergistically enhance investor confidence and drive a more robust, responsible investment landscape.

Underlying macroeconomic factors: The Private Equity market in Czechia is significantly influenced by macroeconomic factors, particularly central bank policies and interest rates. Low interest rates, a result of the Czech National Bank's accommodative monetary policy, make borrowing cheaper, allowing private equity firms to leverage funds more effectively for acquisitions. In contrast, rising interest rates could tighten capital availability, dampening investment activity. Moreover, inflationary pressures impact consumer spending and corporate profitability, affecting the attractiveness of target companies. A stable economic environment, characterized by controlled inflation and steady GDP growth, bolsters investor confidence, enhancing fundraising capabilities and encouraging diversified investment strategies within the private equity 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.