Private Equity - Iran | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$7.04m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 12.59% resulting in a projected total amount of US$7.93m by 2025.
The average size per deal in the Private Equity market amounts to US$1.47m 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 7.30 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 Iran has witnessed a minimal decline in growth rate, influenced by factors such as economic sanctions, limited investment opportunities, and regulatory challenges. However, ongoing reforms and emerging sectors present potential for recovery and future expansion.

Customer preferences: In Iran, there is a notable shift towards technology-driven investment opportunities, particularly in sectors like fintech and e-commerce, as younger demographics embrace digital solutions. This trend reflects a growing preference for convenience and innovation, influenced by increased internet penetration and mobile connectivity. Moreover, cultural shifts towards entrepreneurship are fostering a vibrant startup ecosystem, encouraging private equity firms to explore funding ventures that cater to changing consumer behaviors and preferences in a rapidly evolving market landscape.

Trends in the market: In Iran, the private equity market is increasingly gravitating towards technology startups, particularly within fintech and e-commerce. This surge is driven by a tech-savvy younger population seeking innovative solutions for everyday transactions. Notably, regulatory changes are fostering a more conducive environment for investment, encouraging local and international firms to capitalize on these opportunities. As digital platforms gain popularity, they are reshaping consumer behavior and creating new avenues for growth, which could lead to a more competitive landscape for industry stakeholders, potentially prompting strategic partnerships and increased funding activities.

Local special circumstances: In Iran, the private equity market is uniquely shaped by a blend of youthful demographics and cultural tendencies favoring entrepreneurship. The country's rich cultural heritage fosters a strong community-oriented mindset, driving local innovations in fintech and e-commerce that resonate with traditional values. Additionally, regulatory reforms aimed at attracting foreign investment are creating a more transparent business environment. This distinct confluence of cultural, regulatory, and demographic factors positions Iran's private equity landscape for significant growth, enabling startups to navigate challenges while seizing market opportunities.

Underlying macroeconomic factors: The private equity market in Iran is significantly impacted by overarching macroeconomic factors such as interest rates set by the central bank and overall national economic health. Lower interest rates can enhance access to capital, encouraging investment in startups and innovative ventures, thereby stimulating growth in the private equity space. Conversely, high interest rates may deter investments as borrowing costs rise, limiting available funding. Additionally, global economic trends, such as shifts in commodity prices and international trade dynamics, can affect investor sentiment and risk appetite, further influencing the performance of Iran's private equity market.

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.