Private Equity - Peru | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$11.24m 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$11.97m by 2025.
The average size per deal in the Private Equity market amounts to US$3.75m 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 2.87 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 Peru is undergoing a minimal decline, influenced by factors such as economic uncertainty, fluctuating commodity prices, and cautious investor sentiment, which are affecting overall investment activity and deal flows in the region.

Customer preferences: In the context of the Private Equity market in Peru, investors are increasingly recognizing the potential of businesses that align with sustainable and socially responsible practices. There is a growing consumer preference for eco-friendly products and services, influenced by rising environmental awareness among younger demographics. Additionally, the urban middle class is expanding, leading to increased demand for innovative technology solutions in sectors such as fintech and e-commerce. As lifestyles evolve, private equity firms are adjusting their strategies to focus on companies that cater to these shifting consumer behaviors.

Trends in the market: In Peru, the Private Equity market is seeing a shift toward investments in sustainable and socially responsible ventures, as firms increasingly prioritize environmental, social, and governance (ESG) criteria in their portfolios. The surge in demand for eco-friendly products reflects a broader trend among consumers, particularly among the urban middle class, who are seeking brands that align with their values. Additionally, the fintech and e-commerce sectors are experiencing rapid growth, driven by an increasingly tech-savvy population. This evolving landscape presents significant opportunities for private equity firms willing to adapt their strategies to meet these emerging consumer demands.

Local special circumstances: In Peru, the Private Equity market is shaped by unique geographical and cultural factors that influence investment strategies. The country's diverse ecosystems and rich cultural heritage encourage investments in sustainable tourism and agriculture, appealing to local and international investors. Moreover, the regulatory landscape is evolving, with government incentives aimed at promoting eco-friendly businesses. The urban population’s increasing emphasis on social responsibility drives demand for investments that align with cultural values, creating opportunities for private equity firms focused on impactful ventures.

Underlying macroeconomic factors: The Private Equity market in Peru is significantly influenced by overarching macroeconomic factors such as interest rates, inflation, and overall economic stability. The Central Bank's monetary policy, particularly its interest rate decisions, plays a crucial role in shaping investment strategies. Lower interest rates can enhance access to capital, making it more attractive for private equity firms to finance acquisitions. Conversely, rising rates may lead to tighter liquidity and increased borrowing costs, dampening investment enthusiasm. Moreover, the country’s inflationary pressures and currency fluctuations affect investor confidence, while a stable economic outlook encourages long-term commitments in sectors like sustainable tourism and agriculture.

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.