Private Equity - Malta | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$56.06m 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$58.53m by 2025.
The average size per deal in the Private Equity market amounts to US$56.06m 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 1.74 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 Malta has seen a slight decline in growth, influenced by factors such as economic uncertainties, tighter regulations, and a cautious investment climate. However, ongoing efforts to enhance the business environment may foster future stability.

Customer preferences: Investors in Malta's Private Equity market are increasingly prioritizing sustainability and socially responsible investments, reflecting a cultural shift towards environmental consciousness. There is a growing demand for funds that focus on green technologies and ethical business practices. Additionally, demographic shifts, such as a younger, more socially aware populace, are driving this trend. As lifestyle factors evolve, investors are favoring companies that demonstrate a commitment to corporate social responsibility, influencing the types of businesses attracting capital in the region.

Trends in the market: In Malta, the Private Equity market is experiencing a substantial shift towards sustainable investments, as investors increasingly favor funds that prioritize environmental, social, and governance (ESG) criteria. This trend is marked by the rise of funds targeting renewable energy and sustainable technologies, reflecting a broader commitment to responsible investing. Additionally, there is a notable influx of capital directed towards companies with robust corporate social responsibility initiatives. As younger investors become dominant, the emphasis on ethical practices is reshaping industry dynamics, compelling stakeholders to adapt or risk losing relevance.

Local special circumstances: In Malta, the Private Equity market is uniquely influenced by its strategic geographic location in the Mediterranean, acting as a gateway for European and North African investments. The island's regulatory framework is investor-friendly, with robust legislation that supports fund structures and tax incentives for sustainable investments. Culturally, Malta's commitment to sustainability is reflected in its government initiatives promoting green technologies and responsible business practices, attracting capital from socially conscious investors. This combination of local factors fosters a dynamic environment for private equity, distinguishing it from broader European trends.

Underlying macroeconomic factors: The Private Equity market in Malta is significantly shaped by macroeconomic factors, particularly central bank policies and interest rates. Low interest rates enhance the attractiveness of leveraging, enabling private equity firms to access cheaper capital for acquisitions and investments. This environment encourages increased deal flow and higher valuations for companies being targeted for buyouts. Conversely, rising interest rates may dampen investment activity by increasing borrowing costs, thus reducing the liquidity available for fund managers. Additionally, Malta's fiscal policies, including tax incentives for private equity investments and a stable economic outlook, further bolster investor confidence, fostering a resilient and competitive market 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.