Private Equity - Egypt | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$155.40m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 6.51% resulting in a projected total amount of US$165.50m by 2025.
The average size per deal in the Private Equity market amounts to US$31.07m 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 4.74 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 Egypt is witnessing minimal decline, influenced by factors like economic uncertainty, regulatory challenges, and fluctuating investor confidence, which collectively impact growth potential despite ongoing interest in investment opportunities.

Customer preferences: The Private Equity market in Egypt is experiencing a notable shift in investor preferences towards sustainable and socially responsible investments. As younger, more environmentally conscious investors enter the market, there is a growing demand for businesses that prioritize sustainability and ethical practices. This shift reflects broader demographic trends, where millennials and Gen Z are increasingly making investment decisions based on a company's social impact. Additionally, the integration of technology in businesses is becoming essential, as investors seek innovative solutions that align with modern lifestyle demands.

Trends in the market: In Egypt, the Private Equity market is increasingly shifting toward sustainable investing, with a notable rise in funds targeting environmentally responsible ventures. Investors are prioritizing businesses that demonstrate a commitment to social impact, reflecting the values of younger generations such as millennials and Gen Z. Additionally, the emphasis on technology integration is becoming paramount, as firms adopting innovative solutions are more likely to attract investment. This trend not only fosters a more ethical business landscape but also incentivizes industry stakeholders to adapt, ensuring long-term viability and competitiveness in a changing market.

Local special circumstances: In Egypt, the Private Equity market is uniquely influenced by its cultural heritage and the youthful population, with over 60% of its citizens under the age of 30. This demographic shift drives demand for innovative and sustainable businesses that resonate with their values. Additionally, the government’s support for investment in green technologies and infrastructure through regulatory incentives enhances the appeal of sustainable ventures. Coupled with Egypt's strategic geographical position as a gateway to Africa and Europe, these local factors create a dynamic landscape for private equity investments focused on sustainability and technology.

Underlying macroeconomic factors: The Private Equity market in Egypt is significantly influenced by macroeconomic factors such as central bank policies, particularly interest rates, which directly affect borrowing costs and investment decisions. Lower interest rates can stimulate private equity activity by making debt financing more accessible, encouraging investments in innovative startups and sustainable projects. Conversely, rising rates may deter investments due to higher costs of capital, potentially dampening market growth. Additionally, the government’s fiscal policies, including tax incentives and support for entrepreneurship, further shape the private equity landscape, making Egypt an attractive destination for investors looking to capitalize on its youthful demographic and growth potential.

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.