Private Equity - Portugal | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$435.20m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 4.41% resulting in a projected total amount of US$454.40m by 2025.
The average size per deal in the Private Equity market amounts to US$11.16m 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 47.19 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 Portugal has faced minimal decline, influenced by factors such as economic uncertainties and regulatory changes. However, increasing investor interest and a growing number of startups are helping to stabilize and gradually enhance market performance.

Customer preferences: Investors in Portugal’s Private Equity market are increasingly focusing on sustainable and socially responsible investments, reflecting a shift in consumer preferences towards ethical business practices. The rise of tech-savvy millennials and Gen Z is driving demand for innovative startups that prioritize sustainability and social impact. Additionally, there’s a notable trend towards digital transformation in traditional sectors, as businesses adapt to evolving consumer behaviors shaped by remote work and a preference for online services, enhancing their appeal to investors.

Trends in the market: In Portugal, the Private Equity market is experiencing a surge in interest towards sustainable investing, with a growing number of funds targeting environmentally and socially responsible startups. The influence of tech-savvy millennials and Gen Z is reshaping investment strategies, as these generations prioritize companies with strong ethical standards and impactful missions. Additionally, traditional businesses are increasingly integrating digital technologies to enhance operational efficiency and consumer engagement, which is attracting significant capital. This shift emphasizes the need for industry stakeholders to align with evolving consumer values and adapt to a more sustainable investment landscape.

Local special circumstances: In Portugal, the Private Equity market is uniquely influenced by its rich cultural heritage and strategic geographical location, which attracts foreign investment. The country’s strong emphasis on sustainability and renewable energy initiatives has fostered a vibrant environment for eco-conscious startups. Additionally, Portugal's regulatory framework supports innovation through incentives for venture capital and startups, encouraging growth in sectors like technology and green energy. As a result, investors are increasingly focusing on ventures that not only promise financial returns but also align with social and environmental goals.

Underlying macroeconomic factors: The Private Equity market in Portugal is significantly shaped by overarching macroeconomic factors, particularly central bank policies and interest rates. When interest rates are low, borrowing costs decrease, making it easier for private equity funds to leverage their investments in promising startups. This environment encourages higher transaction volumes within the market as investors seek opportunities that yield strong returns. Conversely, rising interest rates may deter investment as capital becomes more expensive, reducing the appeal of leveraged buyouts. Furthermore, the overall economic climate—characterized by GDP growth, inflation rates, and consumer confidence—also plays a crucial role in shaping investor sentiment and consequently affects market performance.

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.