Private Equity - Malawi | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$3.62m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 11.36% resulting in a projected total amount of US$4.04m by 2025.
The average size per deal in the Private Equity market amounts to US$2.39m 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 1.93 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 Malawi is witnessing minimal decline, influenced by factors such as limited investment opportunities, economic challenges, and regulatory barriers. Despite these hurdles, there remains a steady interest in fostering growth and enhancing market potential.

Customer preferences: In Malawi, there is a noticeable shift towards sustainable and socially responsible investing within the private equity market, reflecting growing consumer awareness regarding environmental and social issues. Investors are increasingly prioritizing businesses that align with ethical practices and community well-being. Additionally, the youth demographic, which is becoming more entrepreneurial, is pushing demand for innovative startups that address local challenges. This trend indicates a movement towards investments that not only yield financial returns but also contribute positively to society.

Trends in the market: In Malawi, the private equity market is experiencing an uptick in investments focused on sustainable agriculture, renewable energy, and technology-driven solutions that seek to resolve local issues. There is a marked emphasis on funding ventures that promote environmental stewardship and social equity, as investors increasingly recognize the importance of aligning financial goals with impactful practices. Furthermore, with the rise of technology adoption among the youth, there is a burgeoning interest in startups that leverage innovation to address challenges in healthcare, education, and financial inclusion. This trajectory is not only reshaping investment strategies but also enhancing community resilience and economic growth, thus broadening the horizons for industry stakeholders.

Local special circumstances: In Malawi, the private equity market is uniquely shaped by its rich agricultural base and a youthful population eager for innovation. The country's diverse geography, featuring both arable land and renewable resources, presents opportunities for sustainable agriculture and energy projects. Culturally, strong community ties drive social enterprises that prioritize local needs, while regulatory frameworks are gradually evolving to support investment in emerging sectors. This unique blend of factors fosters a dynamic investment landscape focused on impactful, inclusive growth.

Underlying macroeconomic factors: The private equity market in Malawi is significantly influenced by macroeconomic factors including central bank policies, particularly regarding interest rates. Lower interest rates tend to decrease the cost of borrowing, enabling private equity firms to access cheaper capital for investments in growth-oriented sectors. Conversely, high interest rates can stifle investment momentum, as financing becomes more expensive, curtailing potential returns. Additionally, global economic trends, such as commodity price fluctuations and investment flows, directly affect local valuations and exit opportunities. Furthermore, national economic health, characterized by GDP growth and inflation rates, shapes investor confidence and impacts the liquidity of the 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.