Private Equity - Jordan | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$278.40m 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$296.60m by 2025.
The average size per deal in the Private Equity market amounts to US$92.82m 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 2.87 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 Jordan is witnessing minimal decline, influenced by factors such as economic challenges, cautious investor sentiment, and a lack of diversified investment opportunities. However, ongoing reforms and increased foreign interest could foster future growth.

Customer preferences: Investors in Jordan's Private Equity market are increasingly gravitating towards sectors that align with evolving consumer preferences, particularly in technology, e-commerce, and renewable energy. The rise of a tech-savvy younger demographic is driving demand for innovative solutions, while a growing middle class is pushing for improved lifestyle services and products. Additionally, sustainability concerns are prompting investments in socially responsible ventures and green technologies, reflecting a cultural shift towards environmental consciousness and sustainable practices.

Trends in the market: In Jordan, the Private Equity market is increasingly focused on sectors such as technology, e-commerce, and renewable energy, reflecting a shift in investor priorities. The infusion of capital into tech startups is accelerating innovation, driven by a young, tech-savvy population eager for digital solutions. Simultaneously, the e-commerce boom is reshaping retail dynamics, responding to a growing middle class demanding convenience and quality. Moreover, investments in renewable energy and sustainable projects are gaining momentum, addressing both market needs and environmental sustainability, indicating a broader trend towards responsible investing among stakeholders.

Local special circumstances: In Jordan, the Private Equity market is uniquely shaped by its geopolitical position and youthful demographic. The country’s strategic location as a gateway between Europe, Asia, and Africa attracts international investors, enhancing market accessibility. Culturally, the emphasis on entrepreneurship among the youth fosters innovation, particularly in sectors like tech and e-commerce. Additionally, regulatory frameworks promoting foreign investment and simplifying business operations bolster a conducive environment for private equity, setting Jordan apart in a competitive regional landscape.

Underlying macroeconomic factors: The Private Equity market in Jordan is significantly influenced by macroeconomic factors such as interest rates, central bank policies, and overall economic stability. Low interest rates, driven by accommodative central bank policies, reduce the cost of capital, making it easier for private equity firms to finance acquisitions and invest in growth opportunities. Additionally, a stable inflation rate enhances investment confidence, attracting foreign capital into the market. The government's fiscal policies, aimed at stimulating economic growth through infrastructural development and tax incentives, further bolster the private equity landscape, enabling firms to capitalize on emerging sectors and innovative startups.

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.