Private Equity - France | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$51.14bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 0.72% resulting in a projected total amount of US$51.51bn by 2025.
The average size per deal in the Private Equity market amounts to US$57.73m 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 1.04k 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 France is currently facing a subdued decline, influenced by economic uncertainty, regulatory challenges, and competitive pressures. These factors have led to cautious investment strategies, impacting overall growth rates in the sector.

Customer preferences: Investors in the French Private Equity market are increasingly prioritizing investments in sustainability and social impact, reflecting a growing consumer demand for ethical business practices. This shift is influenced by younger demographics who favor responsible brands and are willing to support companies that align with their values. Additionally, advancements in technology are driving interest in digital transformation across sectors, prompting investors to seek opportunities in tech-driven firms that can deliver innovative solutions and enhance operational efficiency.

Trends in the market: In France, the Private Equity market is experiencing a notable shift towards sustainable investments, with firms increasingly integrating Environmental, Social, and Governance (ESG) criteria into their portfolios. This trend is driven by heightened awareness among investors and consumers alike regarding climate change and social justice issues. Concurrently, there is a surge in interest in technology-centric businesses that prioritize innovation, particularly in sectors such as clean energy and digital finance. These dynamics not only influence capital allocation but also challenge traditional investment approaches, compelling stakeholders to adapt their strategies to meet evolving market demands.

Local special circumstances: In France, the Private Equity market is shaped by a strong regulatory environment that emphasizes sustainable practices, with the EU's Green Deal influencing investment strategies. Additionally, the country’s cultural focus on social equity and environmental stewardship drives firms to prioritize ESG criteria. Geographically, France’s leadership in sectors like renewable energy fosters investment in innovative technologies. Together, these factors create a distinct landscape for Private Equity, promoting a shift towards responsible investing that resonates with the values of both local investors and consumers.

Underlying macroeconomic factors: The Private Equity market in France is significantly influenced by macroeconomic factors, notably central bank policies related to interest rates. Low interest rates, driven by the European Central Bank’s accommodative monetary policy, enhance liquidity and lower borrowing costs, encouraging firms to pursue leveraged buyouts and growth capital investments. Conversely, rising interest rates may tighten capital availability, impacting deal valuations and exit strategies. Additionally, France's stable economic growth, combined with a robust consumer market, supports Private Equity activity, as investors seek to capitalize on emerging opportunities in sectors aligned with sustainable practices and innovation. Overall, the interplay of interest rates and economic indicators shapes investment dynamics 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.