Private Equity - Ireland | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$6.34bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 4.41% resulting in a projected total amount of US$6.62bn by 2025.
The average size per deal in the Private Equity market amounts to US$100.60m 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 76.64 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 Ireland is witnessing minimal decline, influenced by factors such as economic uncertainty, evolving regulatory landscapes, and changing investor sentiment, which together impact overall growth potential in this sector.

Customer preferences: The Private Equity market in Ireland is adapting to notable shifts in investor preferences, driven by a growing emphasis on sustainable and responsible investment practices. Investors are increasingly favoring funds that prioritize environmental, social, and governance (ESG) criteria, reflecting a broader societal push towards ethical considerations in finance. Additionally, demographic shifts, particularly among millennials and Gen Z, are pushing private equity firms to innovate in sectors such as technology and green energy, aligning investment strategies with the values and lifestyle aspirations of these generations.

Trends in the market: In Ireland, the Private Equity market is increasingly prioritizing investments in sustainable initiatives, as firms recognize a shift towards environmental, social, and governance (ESG) frameworks. This trend reflects a broader global movement where investors, particularly millennials and Gen Z, seek alignment between their financial decisions and ethical values. Additionally, there is a marked focus on technology and green energy sectors, prompting firms to innovate and adapt their strategies. This evolution is significant, as it not only shapes investment portfolios but also influences corporate behavior and industry standards, ultimately driving a more responsible investment landscape.

Local special circumstances: In Ireland, the Private Equity market is shaped by a unique blend of geographical, cultural, and regulatory factors that set it apart from other regions. The country's commitment to sustainability and green initiatives is bolstered by EU regulations promoting eco-friendly investments, making Ireland a favorable landscape for funds focused on ESG criteria. Culturally, Irish investors increasingly prioritize ethical investing, influenced by community values and a heightened awareness of social issues. Additionally, the thriving tech ecosystem in cities like Dublin is driving innovation, attracting capital towards digital transformation and green technologies, thereby enhancing the market's dynamism.

Underlying macroeconomic factors: The Private Equity market in Ireland is significantly influenced by macroeconomic factors, particularly central bank policies and interest rate dynamics. Low interest rates, set by the European Central Bank, facilitate cheaper borrowing, enabling more capital to flow into private equity funds, which in turn boosts investment in innovative sectors. Furthermore, as the economy recovers from fluctuations, the availability of credit enhances liquidity, allowing private equity firms to pursue acquisitions and expansion. Concurrently, a robust national economic outlook, driven by growth in tech and sustainable sectors, attracts both domestic and international investors, further energizing the private equity 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.