Private Equity - Honduras | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$4.61m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 10.10% resulting in a projected total amount of US$5.07m by 2025.
The average size per deal in the Private Equity market amounts to US$2.35m 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 2.73 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 Honduras has faced minimal decline recently, influenced by factors such as limited investment opportunities, regulatory challenges, and economic uncertainty, which have all hindered more robust growth in this sector.

Customer preferences: Investors in the Private Equity market in Honduras are witnessing a noticeable shift toward sustainable and socially responsible investment opportunities. As consumers become more environmentally conscious and socially aware, there is a growing demand for companies that prioritize ethical practices and sustainable growth. This trend is closely linked to the younger demographic's preferences, which favor businesses that demonstrate a commitment to social impact. Additionally, the rise of digital transformation in various sectors is encouraging venture capitalists to explore tech-driven startups, highlighting a shift in the investment narrative towards innovation and sustainability.

Trends in the market: In Honduras, the Private Equity market is experiencing a significant shift towards sustainable investments, as more investors seek opportunities that align with ethical and environmental standards. Concurrently, the focus on socially responsible practices is gaining momentum, driven by a younger population that prioritizes social impact in their consumption choices. This evolving landscape is also marked by an uptick in investments in technology-driven startups, reflecting a growing interest in innovation. These trends are critical for industry stakeholders, as they highlight the necessity of adapting strategies to incorporate sustainability and tech advancements to remain competitive and relevant.

Local special circumstances: In Honduras, the Private Equity market is uniquely shaped by its geographical position and cultural context, where diverse ecosystems and rich biodiversity create opportunities for eco-friendly investments. The regulatory environment is evolving, with the government promoting policies that incentivize sustainable practices and foreign investment. Additionally, the strong community ties and emphasis on social equity drive demand for businesses that prioritize local impact. This blend of local factors makes Honduras an attractive landscape for investors looking to balance profitability with social responsibility.

Underlying macroeconomic factors: The Private Equity market in Honduras is significantly influenced by macroeconomic factors such as interest rates, inflation, and foreign investment trends. Central bank policies, particularly around interest rates, play a crucial role; lower rates can enhance investment attractiveness by reducing borrowing costs for portfolio companies, thus facilitating growth and operational expansion. Conversely, rising rates may deter investment as debt servicing becomes more expensive, leading to cautious capital allocation. Moreover, global economic trends, including shifts in commodity prices and trade relations, further impact investor confidence and market performance, shaping the landscape for private equity in Honduras.

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.