Private Equity - Iraq | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$252.00m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 6.51% resulting in a projected total amount of US$268.40m by 2025.
The average size per deal in the Private Equity market amounts to US$252.00m 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 1.45 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 Iraq is witnessing a minimal decline, influenced by geopolitical instability, limited investment opportunities, and fluctuating oil prices, which hinder investor confidence and restrict capital flow into emerging sectors.

Customer preferences: Investors in Iraq's Private Equity market are increasingly focusing on sectors that align with the evolving preferences of the younger demographic, which seeks innovative and technology-driven solutions. There is a growing interest in fintech and e-commerce platforms as more consumers embrace online shopping and digital transactions. Additionally, lifestyle changes driven by urbanization are prompting demand for modern retail experiences and enhanced service delivery, leading investors to support startups that offer convenience and accessibility in their offerings, reflecting a shift in consumer behavior.

Trends in the market: In Iraq, the Private Equity market is experiencing a notable shift towards sectors that prioritize innovative technology and digital solutions. Investors are increasingly backing fintech startups as online banking and payment systems gain traction among young consumers. Additionally, e-commerce platforms are flourishing, reflecting a growing preference for online retail experiences. This trend is further amplified by urbanization, which drives demand for modern retail formats and enhanced service delivery. The implications for industry stakeholders include opportunities for growth, increased competition, and the necessity for adaptation to meet the changing consumer landscape.

Local special circumstances: In Iraq, the Private Equity market is uniquely shaped by its socio-economic landscape, which includes a youthful, tech-savvy population eager for innovation despite challenging infrastructure. The country's rich cultural heritage encourages entrepreneurial ventures, particularly in sectors like fintech and e-commerce, where local solutions must resonate with consumer values. Furthermore, regulatory reforms aimed at attracting foreign investment are gradually easing previous constraints, fostering a more conducive environment for startups. These local dynamics are pivotal in steering investment strategies toward modern commerce and digital integration.

Underlying macroeconomic factors: The Private Equity market in Iraq is significantly influenced by macroeconomic factors such as central bank policies, particularly interest rates, which affect borrowing costs and investment appetites. As the Central Bank of Iraq adjusts interest rates to manage inflation and stimulate economic growth, the liquidity in financial markets fluctuates, impacting the availability of capital for private equity investments. Low interest rates typically encourage investment by reducing the cost of financing, leading to increased funding for startups and growth-stage companies. Conversely, higher rates may dampen investor enthusiasm and challenge valuations, compelling private equity firms to reassess risk and returns in this evolving landscape.

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.