Private Equity - Russia | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$12.01m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 27.80% resulting in a projected total amount of US$15.35m by 2025.
The average size per deal in the Private Equity market amounts to US$857.90k 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 14.13 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 Russia has faced minimal decline, influenced by factors such as geopolitical tensions, fluctuating oil prices, and shifts in investor confidence, which have all contributed to a cautious growth environment amid ongoing economic uncertainties.

Customer preferences: In the evolving landscape of the Private Equity market in Russia, investors are increasingly focusing on technology-driven startups catering to a younger, tech-savvy demographic. As this younger generation prioritizes sustainability and social responsibility, there is a growing demand for investments in green technologies and socially responsible enterprises. Additionally, the rising middle class is fostering interest in consumer goods and e-commerce platforms, prompting Private Equity firms to explore opportunities that align with these changing consumer preferences and lifestyle factors.

Trends in the market: In Russia, the Private Equity market is experiencing a notable shift toward sustainable investing, with firms increasingly directing capital toward startups focused on clean energy and environmental innovation. This trend aligns with the global push for sustainability, prompting investors to seek opportunities that address climate change and resource efficiency. Additionally, there is a surge in interest in technology-centric consumer goods and e-commerce platforms, reflecting the rising demand from a digital-savvy middle class. These trends are significant as they not only influence investment strategies but also encourage industry stakeholders to innovate and adapt to evolving consumer values, shaping the future landscape of the market.

Local special circumstances: In Russia, the Private Equity market is shaped by unique local factors, such as the vast geographical expanse and diverse regional needs, which influence investment focuses. The significant reliance on natural resources creates opportunities for sustainable innovations in energy and environmental practices. Culturally, there is a growing awareness of ecological issues, prompting investors to support green technologies. Furthermore, regulatory changes aimed at fostering startup growth and foreign investment have opened new avenues, enhancing the appeal of the market to both local and international investors.

Underlying macroeconomic factors: The Private Equity market in Russia is significantly influenced by overarching macroeconomic factors, particularly central bank policies and interest rates. Low interest rates generally facilitate access to capital, encouraging private equity firms to leverage debt for acquisitions and investments. Conversely, rising interest rates can heighten borrowing costs, potentially dampening investment activity. Additionally, global economic trends, such as fluctuations in commodity prices and geopolitical tensions, can affect investor confidence and capital flows. As the Russian economy navigates these dynamics, fiscal policies aimed at stabilizing growth and attracting foreign investments further shape the outlook for private equity opportunities within the country.

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.