Private Equity - Netherlands | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$4.36bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -24.53% resulting in a projected total amount of US$3.29bn by 2025.
The average size per deal in the Private Equity market amounts to US$72.71m 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 74.45 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 the Netherlands is currently facing a subdued decline, influenced by economic uncertainties, increased competition, and changing investor preferences, which have all contributed to the slow growth rate in recent years.

Customer preferences: Investors in the Netherlands' Private Equity market are increasingly focusing on sustainability and social impact, reflecting a broader cultural shift towards responsible investing. This trend is driven by a growing awareness of environmental issues and social equity among the younger demographic, who prioritize brands and funds that align with their values. Additionally, there's a heightened interest in technology-driven solutions that enhance operational efficiency and transparency within portfolio companies, further reshaping investment strategies in the sector.

Trends in the market: In the Netherlands, the Private Equity market is increasingly prioritizing sustainability and social impact investing, with a notable shift towards funds that incorporate ESG (Environmental, Social, and Governance) criteria into their strategies. This movement is largely propelled by younger investors who demand alignment between their financial decisions and ethical values. Additionally, there is a surge in technology adoption, such as data analytics and AI, to improve transparency and operational efficiency in portfolio companies. These trends signify a transformative phase for industry stakeholders, as they must adapt to evolving investor expectations and integrate responsible practices to remain competitive in a rapidly changing landscape.

Local special circumstances: In the Netherlands, the Private Equity market is uniquely shaped by its cultural emphasis on sustainability and innovation, reinforced by robust regulatory frameworks that encourage responsible investing. The country's strong commitment to environmental stewardship has fostered a rise in funds prioritizing ESG criteria, aligning with the values of socially conscious investors. Additionally, the Netherlands' advanced digital infrastructure supports the integration of technology in investment strategies, enhancing transparency and operational efficiency. These factors collectively create a distinctive environment for Private Equity, differentiating it from other markets.

Underlying macroeconomic factors: The Private Equity market in the Netherlands is significantly influenced by macroeconomic factors, particularly central bank policies and interest rates. Low interest rates, maintained by the European Central Bank, have created a favorable borrowing environment for firms, allowing private equity funds to leverage acquisitions more effectively. This environment encourages greater capital deployment into innovative and sustainable ventures, aligning with the country's cultural values. Conversely, potential rate hikes could tighten liquidity, impacting deal-making activities and valuations. Furthermore, broader global economic trends, such as inflation and geopolitical tensions, also play a vital role in shaping investor sentiment and market dynamics, influencing fund performance and investment strategies.

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.