Private Equity - Guinea | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$3.73m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 11.19% resulting in a projected total amount of US$4.15m by 2025.
The average size per deal in the Private Equity market amounts to US$2.50m 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 1.97 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 Guinea has faced minimal decline, influenced by factors such as limited investment opportunities, political instability, and challenges in regulatory frameworks, which hinder the overall growth rate of the sector.

Customer preferences: In Guinea, there is a noticeable shift towards sustainable investments within the Private Equity market, driven by consumer demand for environmentally responsible practices. This trend is influenced by a growing awareness of climate change and its impact on local communities. Additionally, younger demographics are increasingly favoring companies that prioritize social responsibility, shaping investment strategies toward sectors such as renewable energy and sustainable agriculture. These evolving preferences reflect a broader cultural shift towards sustainability and ethical consumption, signaling new opportunities for private equity firms.

Trends in the market: In Guinea, the Private Equity market is increasingly gravitating towards sustainable investments, reflecting a broader commitment to environmental responsibility. This trend is fueled by heightened consumer awareness regarding climate change, prompting firms to prioritize sectors like renewable energy and sustainable agriculture. Moreover, the younger population's preference for socially responsible companies is reshaping investment strategies, leading to innovative funding structures. This cultural shift towards ethical consumption signals significant opportunities for private equity firms, urging industry stakeholders to adapt and embrace sustainability as a core component of their investment approaches.

Local special circumstances: In Guinea, the Private Equity market is influenced by diverse local factors, including rich natural resources and a youthful demographic eager for economic transformation. The country's geographical diversity fosters opportunities in sectors like agriculture and mining, attracting investments tailored to sustainable practices. Furthermore, regulatory frameworks are evolving to encourage foreign investment, with government incentives for projects that prioritize ecological sustainability. This unique blend of opportunity and necessity shapes a market dynamic that is both challenging and ripe for innovative, responsible investment strategies.

Underlying macroeconomic factors: The Private Equity market in Guinea is significantly influenced by macroeconomic factors, particularly central bank policy and interest rates. Low interest rates typically encourage borrowing, enabling private equity firms to secure financing for investments in emerging sectors such as agriculture and mining. Additionally, favorable fiscal policies aimed at attracting foreign investment can bolster market confidence. Conversely, rising interest rates may dampen investment activity as borrowing costs increase, impacting deal flow and valuations. Overall, the interplay between regulatory frameworks and global economic conditions shapes the investment landscape, creating both opportunities and challenges for private equity in Guinea.

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.