Private Equity - Namibia | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$51.89m 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$55.27m by 2025.
The average size per deal in the Private Equity market amounts to US$51.89m 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 1.45 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 Namibia is witnessing minimal decline, influenced by factors such as economic uncertainty, limited access to funding, and evolving investor confidence. These elements are crucial in shaping the market's modest growth trajectory.

Customer preferences: In Namibia, the Private Equity market is increasingly witnessing a shift towards sustainable investment strategies, driven by a growing awareness of environmental and social governance (ESG) principles among investors. This trend reflects a cultural shift towards prioritizing ethical and responsible business practices, particularly among younger, socially conscious investors. Furthermore, demographic changes, such as an emerging middle class, are fueling interest in sectors like renewable energy and agribusiness, emphasizing the need for innovative solutions that align with local values and sustainability goals.

Trends in the market: In Namibia, the Private Equity market is experiencing a notable increase in investments directed toward sustainable industries, particularly in renewable energy and agribusiness. This shift is propelled by an influx of socially responsible investors who prioritize ESG criteria, reflecting a broader global movement. Additionally, the rise of the middle class is heightening demand for innovative, sustainable solutions that resonate with local values. This trend not only enhances investment opportunities but also compels industry stakeholders to adapt their strategies, aligning financial returns with long-term environmental and social impacts.

Local special circumstances: In Namibia, the Private Equity market is uniquely influenced by its diverse ecosystem and regulatory framework, which fosters sustainable investment in key sectors like renewable energy and agribusiness. The country’s vast and arid landscapes necessitate innovative solutions for resource management, attracting investors drawn to sustainable practices. Additionally, the cultural emphasis on communal values and traditional land stewardship supports projects that resonate with local communities. Government initiatives promoting ESG standards further enhance the market appeal, creating a conducive environment for sustainable investments to thrive.

Underlying macroeconomic factors: The Private Equity market in Namibia is significantly influenced by broader macroeconomic factors, particularly central bank policies and interest rates. As the Bank of Namibia adjusts interest rates to manage inflation and stimulate economic growth, the cost of borrowing for private equity firms fluctuates, affecting their ability to finance acquisitions and growth initiatives. Lower interest rates typically enhance investment attractiveness by reducing capital costs, encouraging more significant inflows of foreign investment. Additionally, the broader economic environment, including GDP growth and currency stability, impacts investor confidence and the overall market performance, shaping the landscape for sustainable investments in sectors such as renewable energy and agribusiness.

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.