Private Equity - Georgia | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$1.62m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 4.41% resulting in a projected total amount of US$1.70m by 2025.
The average size per deal in the Private Equity market amounts to US$406.30k 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 4.03 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 Georgia is witnessing a minimal decline, influenced by factors like economic uncertainties, shifts in investor sentiment, and regulatory changes. Despite these challenges, investor interest remains in sectors with growth potential and innovation.

Customer preferences: The Private Equity market in Georgia is witnessing an emerging trend where investors are increasingly prioritizing sustainable and socially responsible businesses. With a heightened awareness of environmental issues and social equity, consumer preferences are shifting toward companies that demonstrate commitment to sustainability. Additionally, younger demographics are driving demand for innovative tech solutions catering to convenience and lifestyle, prompting private equity firms to explore opportunities in e-commerce, green technology, and health-focused ventures that align with these values.

Trends in the market: In Georgia, the Private Equity market is increasingly gravitating towards investments in sustainable and socially responsible enterprises, reflecting a broader global trend. As awareness of climate change and social justice rises, investors are keenly focused on backing businesses that prioritize environmental stewardship and ethical practices. Concurrently, younger generations are influencing the market with their demand for innovative technology solutions, driving private equity firms to seek opportunities in sectors like e-commerce, renewable energy, and health-focused companies. This evolving landscape presents significant implications for industry stakeholders, including the necessity for adaptive investment strategies that align with shifting consumer values and regulatory frameworks.

Local special circumstances: In Georgia, the Private Equity market is distinctively shaped by its rich cultural heritage and strategic geographical position at the crossroads of Europe and Asia. This unique blend fosters a burgeoning interest in sustainable tourism and agribusiness, appealing to investors seeking ethical opportunities. Additionally, regulatory frameworks in Georgia encourage foreign investment, enhancing market accessibility. Local initiatives promoting tech startups align with global trends, facilitating the growth of innovative sectors and attracting capital from private equity firms eager to capitalize on the region's potential.

Underlying macroeconomic factors: The Private Equity market in Georgia is significantly influenced by overarching macroeconomic factors, particularly central bank policies and interest rates. Low interest rates foster borrowing and increase liquidity, enabling private equity firms to acquire companies at favorable valuations, driving market growth. Additionally, the stability of the Georgian Lari and inflation control contribute to investor confidence, encouraging foreign capital influx. Economic indicators such as GDP growth and employment rates further support a robust investment climate. As global economic trends shift, Georgia's proactive fiscal policies and commitment to enhancing the business environment position its private equity sector for sustainable expansion.

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.