Private Equity - Denmark | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$6.70bn 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$6.99bn by 2025.
The average size per deal in the Private Equity market amounts to US$37.42m 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 216.80 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 Denmark has shown minimal decline due to factors like cautious investor sentiment, regulatory changes, and evolving market dynamics. Despite challenges, firms are adapting strategies to maintain resilience and seek new opportunities for growth.

Customer preferences: Investors in Denmark's Private Equity market are increasingly focusing on sustainable and responsible investing, reflecting a growing consumer preference for eco-friendly and socially responsible businesses. This shift is influenced by heightened awareness of climate change and social issues among consumers, particularly millennials and Gen Z. Furthermore, demographic changes are prompting a demand for innovative solutions in healthcare, technology, and renewable energy sectors, creating new investment opportunities. As lifestyle factors evolve, firms are strategically adapting portfolios to align with these emerging consumer values.

Trends in the market: In Denmark, the Private Equity market is experiencing a notable shift towards sustainable investment strategies, as firms increasingly prioritize Environmental, Social, and Governance (ESG) criteria in their portfolios. Investors are seeking opportunities in green technologies and renewable energy, reflecting a proactive response to societal calls for climate action. Simultaneously, the growing interest in socially responsible businesses is leading to enhanced due diligence processes that evaluate a company’s social impact. This trend not only aligns investments with consumer values but also positions firms for long-term resilience, creating significant implications for industry stakeholders in terms of capital allocation and risk management.

Local special circumstances: In Denmark, the Private Equity market is uniquely shaped by its strong commitment to sustainability, supported by both cultural values and regulatory frameworks that prioritize environmental stewardship. The country's emphasis on social welfare and inclusive business practices encourages investors to seek out companies that demonstrate positive social impact. Furthermore, Denmark's robust renewable energy sector, backed by government incentives, attracts private equity firms into green technologies. These local factors create a distinct environment where sustainable investing is not merely a trend, but a strategic imperative for long-term success.

Underlying macroeconomic factors: The Private Equity market in Denmark is significantly influenced by overarching macroeconomic factors, particularly central bank policy and interest rates. Low interest rates set by the Danish central bank stimulate borrowing and investment, encouraging private equity firms to leverage capital for acquisitions and expansions. Conversely, rising interest rates can limit available financing and heighten borrowing costs, creating a cautious investment climate. Additionally, the stability of Denmark's economy, characterized by strong GDP growth and low unemployment, provides a favorable backdrop for private equity investments, as healthy economic conditions boost company valuations and exit opportunities.

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.