Private Equity - Panama | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$6.67m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 7.84% resulting in a projected total amount of US$7.19m by 2025.
The average size per deal in the Private Equity market amounts to US$1.81m 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 5.12 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 Panama has been witnessing a minimal decline, influenced by economic uncertainties, regulatory challenges, and a lack of robust investment opportunities, despite potential growth driven by emerging sectors and increasing interest from foreign investors.

Customer preferences: In the Private Equity market in Panama, there is a notable shift towards sustainable and socially responsible investments, reflecting a growing consumer preference for ethical business practices. This trend is fueled by a younger demographic that prioritizes environmental impact and corporate governance in their investment choices. Additionally, the rise of digital platforms has enabled greater access to investment opportunities, prompting a shift in traditional investment behaviors and expanding the appeal of private equity to a broader audience.

Trends in the market: In Panama, the Private Equity market is experiencing a marked shift towards sustainable and impact-driven investments, as fund managers align their strategies with evolving consumer values. This trend is increasingly influenced by a younger investor base that demands transparency and accountability in their financial engagements. Moreover, the adoption of digital platforms is facilitating broader access to private equity opportunities, encouraging both institutional and retail investors to participate. As these dynamics evolve, stakeholders must adapt to a landscape that prioritizes responsible investing, with potential implications for valuation metrics and overall market growth.

Local special circumstances: In Panama, the Private Equity market is shaped by its strategic geographical position as a trade hub, attracting investments from both North and South America. The country’s evolving regulatory framework, which encourages foreign direct investment, enhances the market's appeal. Culturally, there is a growing emphasis on social responsibility, influencing fund managers to seek investments that deliver not only financial returns but also positive social outcomes. These unique factors create a distinctive landscape for private equity, fostering innovation and sustainable growth.

Underlying macroeconomic factors: The Private Equity market in Panama is significantly influenced by overarching macroeconomic factors such as central bank policy, particularly interest rates, as well as global economic trends. Lower interest rates from the central bank enhance liquidity, making it easier for private equity firms to finance acquisitions and investments. This environment fosters growth in the market, as cheaper capital enables greater deal-making activity. Additionally, global economic stability, driven by trade agreements and robust foreign investment, bolsters investor confidence in Panama. Conversely, rising interest rates may dampen market activity by increasing borrowing costs, potentially slowing investment in new ventures and affecting returns for fund managers. These dynamics shape the overall health and performance of the private equity sector.

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.