Private Equity - Kazakhstan | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$6.57m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 10.98% resulting in a projected total amount of US$7.29m by 2025.
The average size per deal in the Private Equity market amounts to US$1.62m 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 4.14 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 Kazakhstan has shown minimal decline recently, influenced by factors such as economic reforms, investment diversification, and growing interest from foreign investors, despite challenges like political instability and regulatory hurdles.

Customer preferences: In Kazakhstan, there is a growing trend towards sustainable and socially responsible investments within the Private Equity market as consumers become more environmentally conscious. This shift is influenced by a younger demographic prioritizing eco-friendly practices and transparency from businesses. Additionally, as disposable incomes rise, there is an increasing demand for innovative products and services that align with modern lifestyles. This evolution in consumer preferences is prompting investors to focus on sectors such as renewable energy and technology-driven solutions that cater to the changing values of society.

Trends in the market: In Kazakhstan, the Private Equity market is experiencing an uptick in investments targeting sustainable and socially responsible ventures. This shift is largely driven by a younger generation that prioritizes eco-consciousness and demands transparency from businesses. Concurrently, the rise in disposable incomes is fostering a market for innovative solutions, particularly in renewable energy and technology sectors. As these trends gain momentum, they signal a transformative phase for industry stakeholders, pushing traditional investment strategies toward more sustainable practices, which could enhance long-term profitability and brand reputation.

Local special circumstances: In Kazakhstan, the Private Equity market is witnessing growth fueled by its vast natural resources and strategic location as a bridge between Europe and Asia. The government’s focus on diversification away from oil dependency has led to increased support for sustainable investments, particularly in green energy and tech startups. Additionally, Kazakhstan's unique cultural emphasis on community and collective well-being drives investor interest in socially responsible projects. These local dynamics nurture an environment where innovative solutions can thrive, attracting both local and international capital.

Underlying macroeconomic factors: The Private Equity market in Kazakhstan is significantly influenced by macroeconomic factors, particularly the policies of the central bank regarding interest rates. Lower interest rates facilitate access to capital, encouraging private equity firms to invest in emerging sectors such as technology and renewable energy. Conversely, rising rates may constrain borrowing and reduce investment appetites, thereby cooling market activity. Additionally, global economic trends, such as commodity price fluctuations, impact investor confidence and capital flows. A stable national economy, supported by prudent fiscal policies, also enhances the attractiveness of Kazakhstan’s private equity landscape, drawing both domestic and foreign investors seeking growth opportunities.

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.