Private Equity - GCC | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$732.60m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 25.45% resulting in a projected total amount of US$919.10m by 2025.
The average size per deal in the Private Equity market amounts to US$21.76m 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 37.41 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 GCC is facing a subdued decline, influenced by factors such as geopolitical uncertainties, fluctuating oil prices, and a challenging investment landscape, which have collectively hampered growth potential in the region.

Customer preferences: In the GCC region, there is a notable shift towards sustainable and socially responsible investments, as consumers become increasingly conscious of environmental and social impact. This trend is reflected in a growing demand for green technologies and ethical business practices, shaping the portfolios of private equity firms. Additionally, a younger demographic is driving interest in technology-driven startups, fostering innovation in sectors such as fintech and e-commerce, which are now viewed as vital for future growth in the investment landscape.

Trends in the market: In the GCC region, the Private Equity market is increasingly focusing on sustainable investments, with firms integrating Environmental, Social, and Governance (ESG) criteria into their decision-making processes. This shift is marked by a robust interest in renewable energy projects and sustainable real estate developments. Furthermore, the emergence of technology-driven ventures, especially in fintech and e-commerce, is gaining momentum as the region's youth embrace digital solutions. This trend not only reflects changing consumer preferences but also presents opportunities for industry stakeholders to enhance their portfolios while meeting ethical investment criteria.

Local special circumstances: In the GCC region, the Private Equity market is uniquely shaped by its geopolitical context, cultural dynamics, and regulatory frameworks. The focus on diversification away from oil dependence has prompted governments to promote non-oil sectors, encouraging investments in sustainable industries. Local cultural values emphasize community-oriented investments, which align with ESG goals. Additionally, regulatory bodies are increasingly supporting innovative startups, particularly in technology and green projects, fostering an environment ripe for private equity growth. This mix of factors cultivates a distinctive investment landscape.

Underlying macroeconomic factors: The Private Equity market in the GCC is significantly influenced by macroeconomic factors, notably the policies set by central banks, particularly concerning interest rates. Low interest rates facilitate cheaper borrowing, enabling private equity firms to leverage investments more effectively and pursue acquisitions aggressively. Conversely, rising interest rates can increase the cost of capital, potentially curtailing deal-making activity. Additionally, global economic trends, such as fluctuations in oil prices and trade dynamics, impact investor sentiment and liquidity. The overall national economic health, including GDP growth and fiscal stability, further shapes the investment landscape, as a robust economy typically attracts more private equity investments and fosters a dynamic entrepreneurial environment.

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.