Private Equity - Gambia | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$3.02m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 10.31% resulting in a projected total amount of US$3.33m by 2025.
The average size per deal in the Private Equity market amounts to US$3.00m 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 1.26 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 Gambia is facing a minimal decline, influenced by factors such as limited access to funding, regulatory challenges, and economic instability. However, ongoing efforts to enhance the investment climate may foster gradual recovery and growth.

Customer preferences: In Gambia, a notable shift in consumer preferences is emerging, reflecting a growing interest in sustainable and socially responsible investing. As awareness of environmental issues and social equity rises, investors are increasingly favoring businesses that prioritize ethical practices and community impact. Additionally, younger demographics are seeking opportunities in technology-driven sectors, emphasizing innovation and digital transformation. This evolving mindset is prompting private equity firms to align their portfolios with these values, potentially reshaping their investment strategies to capture this trend.

Trends in the market: In Gambia, the private equity market is experiencing a notable rise in investments focused on sustainable ventures, as stakeholders prioritize environmentally conscious and socially responsible business practices. This trend is particularly pronounced among younger investors, who are increasingly interested in sectors driven by technology and innovation. These developments signify a shift in investment strategies, urging private equity firms to integrate ethical considerations into their portfolios. As this movement matures, it holds the potential to reshape market dynamics and catalyze growth in industries aligned with these evolving consumer values.

Local special circumstances: In Gambia, the private equity market is uniquely influenced by its geographical positioning along the Atlantic coast, which fosters a growing interest in renewable energy projects, particularly solar and wind. Culturally, there is a strong emphasis on community and social cohesion, prompting investors to seek out ventures that not only promise returns but also enhance local livelihoods. Regulatory frameworks are gradually evolving, with the government promoting foreign investment and entrepreneurship, thereby creating a more conducive environment for sustainable business practices and innovation in various sectors.

Underlying macroeconomic factors: The private equity market in Gambia is significantly influenced by overarching macroeconomic factors such as central bank policies, particularly interest rates, which directly affect borrowing costs for investors. Lower interest rates encourage more private equity firms to secure capital for investment, fostering an environment conducive to growth in various sectors, including renewable energy. Additionally, macroeconomic stability, driven by government fiscal policies aimed at enhancing foreign investment and infrastructure development, plays a crucial role in attracting private equity. Global economic trends, such as rising demand for sustainable investments, further bolster Gambia's appeal, as investors seek opportunities that align with both financial returns and social impact.

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.