Private Equity - Mexico | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$740.00m 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$788.20m by 2025.
The average size per deal in the Private Equity market amounts to US$61.67m 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 15.38 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 Mexico is witnessing minimal decline, influenced by factors such as economic uncertainty, evolving regulatory environments, and increased competition. Despite these challenges, opportunities remain in sectors like technology and infrastructure.

Customer preferences: In Mexico, there is a noticeable shift in consumer preferences toward sustainable and socially responsible investment opportunities, as millennials and Gen Z increasingly prioritize environmental, social, and governance (ESG) factors. This trend is prompting Private Equity firms to focus on companies that demonstrate strong sustainability practices and impact-driven initiatives. Additionally, the rise of urbanization and digital connectivity is fueling interest in tech-enabled solutions, particularly in e-commerce and fintech, as consumers seek convenience and accessibility in their purchasing behaviors.

Trends in the market: In Mexico, the Private Equity market is increasingly gravitating towards sustainable and socially responsible investments, as millennials and Gen Z prioritize environmental, social, and governance (ESG) factors. This shift is leading firms to focus on companies with robust sustainability practices and impact-driven models, which are seen as more resilient in the long term. Furthermore, urbanization and enhanced digital connectivity are driving investments in tech-enabled sectors, notably e-commerce and fintech, catering to consumer demands for efficiency and accessibility. These trends could reshape investment strategies and influence stakeholder engagement across the industry.

Local special circumstances: In Mexico, the Private Equity market is shaped by a unique blend of cultural values, regulatory frameworks, and economic conditions. The country's emphasis on community-oriented business practices resonates with local investors, driving interest in sustainable ventures that align with traditional values. Additionally, Mexico's regulatory environment is evolving, with initiatives promoting transparency and accountability, which enhance investor confidence. The diverse geography fosters regional investments, particularly in sectors like renewable energy and agriculture, creating varied opportunities that appeal to a broad range of investors.

Underlying macroeconomic factors: The Private Equity market in Mexico is significantly influenced by overarching macroeconomic factors, particularly central bank policies and interest rates. Low-interest rates foster an environment conducive to borrowing, allowing private equity firms to finance acquisitions and expand their portfolios more affordably. Conversely, rising rates can constrain access to capital, dampening investment activity. Additionally, the stability of the Mexican peso against major currencies affects investor confidence and foreign investment. Global economic trends, such as trade agreements and foreign direct investment flows, further shape the landscape, creating a dynamic interplay that impacts market performance and opportunity in Mexico’s private equity sector.

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.