Private Equity - Morocco | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$81.93m 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$87.26m by 2025.
The average size per deal in the Private Equity market amounts to US$20.48m 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 3.73 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 Morocco is witnessing minimal decline, influenced by factors such as economic uncertainty, evolving regulatory frameworks, and a cautious investment climate, which collectively impact investor confidence and growth potential in the sector.

Customer preferences: The Private Equity market in Morocco is observing notable shifts as investors increasingly favor businesses that prioritize sustainability and social responsibility. There is a growing demand for companies that align with eco-friendly practices, reflecting a cultural shift towards environmental consciousness among the populace. Additionally, the rise of a youthful demographic, with higher digital engagement, is prompting investors to explore tech-driven startups that cater to innovative consumer solutions. This evolution is reshaping investment strategies to adapt to changing societal values.

Trends in the market: In Morocco, the Private Equity market is experiencing a significant shift towards sustainable investments, with a growing emphasis on companies that demonstrate environmental and social responsibility. This trend reflects a broader cultural movement that values eco-friendly practices, compelling investors to seek out businesses that align with these ideals. Concurrently, the rise of a tech-savvy, youthful demographic is steering investments towards innovative startups that utilize technology to address evolving consumer needs. This transformation is reshaping investment strategies, highlighting the importance of adaptability for stakeholders in an increasingly conscientious market.

Local special circumstances: In Morocco, the Private Equity market is fueled by a unique blend of cultural heritage and modern aspirations. The country's rich history encourages investments in sustainable agribusiness and artisanal industries, aligning with local traditions while promoting eco-friendly practices. Additionally, Morocco's strategic location as a gateway to Europe and Africa attracts international investors seeking diversified portfolios. Regulatory support for renewable energy projects also enhances market dynamics, encouraging funding for innovative startups in clean technology and social enterprises, thus fostering a culture of responsible investment.

Underlying macroeconomic factors: The growth of the Private Equity market in Morocco is significantly influenced by macroeconomic factors such as interest rates set by the central bank, economic growth indicators, and foreign investment trends. Lower interest rates tend to enhance market liquidity, making capital more accessible for private equity firms to finance acquisitions and expanding businesses. Furthermore, stable economic growth fosters investor confidence, encouraging commitment to long-term projects. Additionally, Morocco's commitment to fiscal policies aimed at attracting foreign direct investment strengthens the private equity landscape, as global investors seek out emerging markets for diversification and 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.