Private Equity - Montenegro | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$4.99m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 8.16% resulting in a projected total amount of US$5.40m by 2025.
The average size per deal in the Private Equity market amounts to US$2.28m 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 2.78 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.

For more information on the data displayed, use the info button right next to the boxes.

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 Montenegro has seen a minimal decline, influenced by factors such as economic uncertainties, limited investment opportunities, and challenges in attracting foreign capital, despite potential for growth amidst emerging sectors.

Customer preferences: In Montenegro, rising consumer preferences for sustainable and socially responsible investments are reshaping the Private Equity landscape. There is a growing demand for funds that prioritize environmental, social, and governance (ESG) criteria, reflecting a cultural shift towards conscientious investing. Additionally, younger demographics are increasingly favoring innovative start-ups in technology and renewable energy sectors, signaling a shift in focus among investors. This evolving mindset creates new opportunities for private equity firms to align their portfolios with emerging consumer values and trends.

Trends in the market: In Montenegro, the Private Equity market is experiencing a notable shift towards sustainable investments, driven by increasing consumer awareness of environmental and social issues. Investors are now prioritizing funds that integrate ESG criteria, reflecting a broader cultural transformation towards responsible investing. Simultaneously, there is a rising interest in tech-driven and renewable energy start-ups among younger investors, highlighting a preference for innovative solutions. This convergence of values presents significant opportunities for private equity firms to align their strategies with these evolving consumer trends, potentially reshaping their investment portfolios and driving growth.

Local special circumstances: In Montenegro, the Private Equity market is shaped by the country's unique geographical landscape and cultural heritage, fostering a distinct investment environment. The Adriatic coastline attracts tourism-driven projects, particularly in renewable energy and sustainable hospitality, appealing to investors focused on eco-friendly ventures. Additionally, Montenegro's regulatory framework supports foreign investment, promoting transparency and ease of doing business. This combination of natural resources and cultural emphasis on sustainability positions the market favorably for private equity firms targeting innovative sectors aligned with local values.

Underlying macroeconomic factors: The Private Equity market in Montenegro is significantly influenced by macroeconomic factors, notably central bank policies and interest rates. Lower interest rates, often a result of accommodative monetary policy, reduce the cost of capital, making it easier for private equity firms to finance acquisitions and growth initiatives. Conversely, rising interest rates can dampen investment activity by increasing borrowing costs, leading to a more cautious approach from investors. Furthermore, the stability of Montenegro's national economic health, characterized by GDP growth and fiscal policies aimed at attracting foreign investment, enhances investor confidence, thus shaping the overall performance of the private equity landscape in the region.

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.