Private Equity - Myanmar | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$5.06m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 11.37% resulting in a projected total amount of US$5.64m by 2025.
The average size per deal in the Private Equity market amounts to US$2.16m 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 3.33 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 Myanmar is currently facing minimal decline, influenced by factors such as political instability, regulatory challenges, and fluctuating investor confidence, which have hindered robust investment activity in the region.

Customer preferences: In Myanmar, there is a noticeable shift towards sustainable and socially responsible investment, reflecting growing consumer awareness of environmental and social issues. Investors are increasingly favoring businesses that prioritize ethical practices, leading to a rise in demand for companies focused on eco-friendly products and services. Additionally, as urbanization progresses, younger demographics are driving interest in technology-driven solutions, pushing private equity firms to consider ventures that cater to the rising demand for digital platforms and e-commerce solutions.

Trends in the market: In Myanmar, the Private Equity market is experiencing a notable trend towards investment in green technologies and social enterprises, driven by increasing consumer consciousness around sustainability. This shift is prompting private equity firms to seek opportunities in businesses that prioritize ethical sourcing and environmental stewardship. Furthermore, as urban areas expand, younger consumers are demanding innovative digital solutions, encouraging investors to focus on tech-driven startups. This trajectory not only aligns with global sustainability goals but also presents significant growth prospects for stakeholders, enhancing their competitive advantage in an evolving market landscape.

Local special circumstances: In Myanmar, the Private Equity market is uniquely shaped by a combination of geographical, cultural, and regulatory factors. The country’s rich natural resources and biodiversity create substantial opportunities for investment in sustainable practices, particularly in agriculture and eco-tourism. Culturally, there is a strong community ethos that influences consumer preferences towards socially responsible businesses. Moreover, the evolving regulatory landscape, with a focus on facilitating foreign direct investment, encourages private equity firms to engage more deeply in sectors that foster both economic growth and environmental sustainability, setting Myanmar apart from other markets.

Underlying macroeconomic factors: The Private Equity market in Myanmar is significantly influenced by macroeconomic factors such as central bank policies, particularly interest rates, as well as national economic health and global economic trends. Fluctuating interest rates directly affect the cost of capital, influencing how private equity firms structure their investments and leverage. A lower interest rate environment encourages borrowing and investment, leading to increased deal activity in the market. Additionally, Myanmar's ongoing economic reforms and efforts to stabilize its financial system attract foreign investment, enhancing the private equity landscape. Global economic uncertainties also play a role, as shifts in investor sentiment can impact capital flows into Myanmar's emerging sectors.

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.