Private Equity - Eastern Europe | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$47.03m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 14.04% resulting in a projected total amount of US$53.63m by 2025.
The average size per deal in the Private Equity market amounts to US$1.06m 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 45.97 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 Eastern Europe is facing minimal decline, influenced by factors like economic uncertainty, geopolitical tensions, and evolving regulatory landscapes. Despite challenges, investor interest remains resilient, seeking opportunities in emerging sectors.

Customer preferences: In Eastern Europe, consumers are increasingly prioritizing sustainable and socially responsible investments, prompting a shift in private equity strategies towards green technologies and ethical business practices. There's a rising demand for e-commerce platforms that cater to local artisans and producers, reflecting a desire for unique, culturally-rooted products. Additionally, the younger demographic is driving interest in tech startups focused on digital solutions, as remote work and online engagement become integral to their lifestyles.

Trends in the market: In Eastern Europe, the private equity market is increasingly focused on sustainable investments, with funds actively seeking opportunities in green technologies and socially responsible enterprises. This shift reflects a broader consumer demand for ethical business practices. Additionally, there is a notable trend towards e-commerce platforms that support local artisans, showcasing a preference for unique cultural products. The younger demographic is catalyzing interest in tech startups, particularly those offering digital solutions that enhance remote work and online interactions, positioning industry stakeholders to adapt to a rapidly evolving market landscape.

Local special circumstances: In Eastern Europe, the private equity market is shaped by distinct local factors, including diverse cultural heritage and varying regulatory landscapes across countries. The region's rich traditions often inspire investments in businesses that preserve local crafts and promote cultural identity. Additionally, EU alignment offers regulatory advantages, facilitating cross-border investment flows. Geographically, proximity to both Western markets and emerging economies enhances access to growth opportunities, while a youthful population drives demand for innovative technologies, shaping a dynamic investment environment.

Underlying macroeconomic factors: The Private Equity market in Eastern Europe is significantly impacted by macroeconomic factors, particularly central bank policies and interest rates. Low interest rates typically enhance access to capital, encouraging private equity firms to pursue acquisitions and investments in local businesses. Conversely, rising rates can lead to a tightening of financial conditions, which may deter investment and lower valuations. Additionally, inflationary pressures often influence the cost of borrowing, directly affecting deal flow and exit strategies. A stable national economic environment, characterized by sustainable growth and sound fiscal policies, further supports investor confidence, fostering a more robust private equity landscape 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.