Private Equity - Ghana | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$4.34m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 12.01% resulting in a projected total amount of US$4.86m by 2025.
The average size per deal in the Private Equity market amounts to US$2.14m 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 2.07 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 Ghana has seen a minimal decline in growth, influenced by economic uncertainties, limited access to funding, and fluctuating investor confidence. Despite these challenges, there remains potential for recovery through strategic investments and emerging sectors.

Customer preferences: Investors in Ghana's Private Equity market are observing a growing consumer preference for sustainable and socially responsible businesses, spurred by heightened awareness of environmental issues and social equity. This trend is particularly strong among the youth demographic, who prioritize brand transparency and ethical practices. Additionally, urbanization and increased access to technology are driving demand for e-commerce solutions, prompting private equity firms to explore investments in tech-driven startups that cater to evolving lifestyle demands and the expanding middle class.

Trends in the market: In Ghana, the Private Equity market is experiencing a notable shift towards investments in sustainable and socially responsible businesses, driven by increasing consumer awareness of environmental and social issues. This trend is particularly evident among the youth, who demand greater brand transparency and ethical practices. Additionally, urbanization and improved access to technology are fueling a surge in e-commerce, prompting private equity firms to target tech-driven startups. This trajectory not only aligns with evolving consumer preferences but also opens new avenues for financing innovations that support the expanding middle class, highlighting the potential for long-term growth and impact.

Local special circumstances: In Ghana, the Private Equity market is uniquely influenced by its rich cultural heritage and a strong emphasis on community-oriented business practices. The growing youth population, with its penchant for innovation, is reshaping investment priorities towards socially responsible ventures that cater to local needs. Geographically, Ghana's diverse landscape facilitates agricultural investments, while regulatory reforms are enhancing the business environment, encouraging foreign capital. This combination fosters a dynamic ecosystem that promotes tech startups and sustainable enterprises, reflecting a distinct approach to private equity compared to other markets.

Underlying macroeconomic factors: The Private Equity market in Ghana is significantly shaped by macroeconomic factors such as central bank policies, particularly interest rates. Lower interest rates foster access to affordable financing, encouraging private equity firms to invest in startups and expanding businesses. Conversely, rising interest rates can deter investment, as the cost of capital increases, limiting growth opportunities for enterprises. Additionally, national economic health, reflected in GDP growth rates, influences investor confidence, while fiscal policies aimed at boosting local entrepreneurship further attract private equity. Global economic trends, including commodity prices and foreign investment flows, also play a crucial role in shaping the market dynamics.

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.