Private Equity - EAEU | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$30.60m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 16.58% resulting in a projected total amount of US$35.68m by 2025.
The average size per deal in the Private Equity market amounts to US$1.24m 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 26.08 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 the EAEU is facing a minimal decline, influenced by factors such as economic uncertainty, regulatory challenges, and shifting investor sentiment. Despite these obstacles, there remains cautious optimism for future opportunities in the region.

Customer preferences: In the EAEU, there’s a noticeable shift towards sustainable and socially responsible investments, as consumers increasingly prioritize companies that align with their values. This trend is influenced by rising environmental awareness and a growing demographic of younger, socially conscious investors who demand transparency and ethical practices. Additionally, the appetite for digital transformation is reshaping industries, prompting private equity firms to explore opportunities in tech-driven sectors that cater to evolving lifestyle preferences and connectivity needs.

Trends in the market: In the EAEU, the Private Equity Market is experiencing a surge in investment focused on sustainable and impact-driven companies, as investors increasingly seek alignment with ethical values. This shift is being propelled by a new wave of younger investors prioritizing Environmental, Social, and Governance (ESG) criteria. Simultaneously, there’s a strong push towards digitization, driving private equity firms to capitalize on tech-centric businesses that meet the demands of a rapidly evolving consumer landscape. These trends present significant implications for industry stakeholders, necessitating a re-evaluation of investment strategies to incorporate sustainable practices and technological advancements.

Local special circumstances: In the EAEU, the Private Equity Market is shaped by a unique blend of geographical and cultural factors, as well as regulatory environments that differ significantly from other regions. The vast and diverse landscape encompasses various economies with distinct needs, prompting investors to tailor their strategies to local contexts. For instance, the cultural emphasis on community and sustainability drives interest in impact investments, while regulatory frameworks are increasingly evolving to support and encourage ESG initiatives. This dynamic fosters an environment ripe for innovative investment opportunities in emerging sectors.

Underlying macroeconomic factors: The Private Equity Market in the EAEU is significantly influenced by overarching macroeconomic factors, particularly central bank policies and interest rates. As central banks adjust interest rates to manage inflation and stimulate economic growth, the cost of capital for private equity investments fluctuates accordingly. Lower interest rates make financing more accessible, encouraging investment in high-potential sectors, while higher rates can dampen activity by increasing borrowing costs. Additionally, macroeconomic stability and investor confidence are shaped by national fiscal policies, trade agreements, and geopolitical dynamics, all of which play critical roles in shaping the investment climate in the region.

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.