Private Equity - Rwanda | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$3.66m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 10.98% resulting in a projected total amount of US$4.07m by 2025.
The average size per deal in the Private Equity market amounts to US$2.46m 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 1.93 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 Rwanda has seen minimal decline, influenced by factors such as evolving investment opportunities, ongoing reforms in the financial sector, and a focus on economic diversification, which together support a more resilient investment landscape.

Customer preferences: In Rwanda, there is a notable shift towards sustainable and socially responsible investments as consumers become more aware of environmental and social issues. This trend is driving private equity firms to prioritize investments in green technologies and companies that promote social equity. Additionally, the growing urban middle class is increasing demand for innovative financial products and services, steering investments towards fintech solutions that enhance accessibility and financial literacy. This evolving landscape reflects a commitment to both economic growth and societal impact.

Trends in the market: In Rwanda, the Private Equity Market is experiencing a surge in interest towards impact investing, particularly in sectors focused on renewable energy and sustainable agriculture. This shift is fueled by both local and international investors seeking opportunities that align with global sustainability goals. Furthermore, there's an increasing emphasis on gender equity and social inclusion, prompting firms to invest in businesses led by women and those promoting social change. The rise of fintech startups is also notable, as they cater to a tech-savvy urban population, enhancing financial literacy and access among underserved communities. These trends not only signify a transformation in investment strategies but also pave the way for a more inclusive economic future in Rwanda.

Local special circumstances: In Rwanda, the Private Equity Market is uniquely shaped by a combination of geographical factors, cultural dynamics, and regulatory frameworks. The country's mountainous terrain and rural population create a demand for innovative solutions in renewable energy, particularly off-grid solar systems. Culturally, a strong emphasis on community welfare encourages investments in agriculture and social enterprises, fostering local partnerships. Additionally, the Rwandan government actively supports foreign investment through streamlined regulations, enhancing appeal to impact-focused investors. These elements collectively drive a distinctive investment landscape, promoting sustainable growth and inclusivity.

Underlying macroeconomic factors: The Private Equity Market in Rwanda is significantly influenced by macroeconomic factors, particularly central bank policies and interest rates. Favorable monetary policies, including low interest rates, enhance access to capital for private equity funds, encouraging investments in sectors like renewable energy and agriculture. Conversely, rising interest rates can deter investments, as borrowing costs increase, impacting deal flows. Overall, a stable national economic environment, reflected in GDP growth and inflation rates, further bolsters investor confidence, facilitating entry into long-term ventures. Additionally, global economic trends, such as commodity prices and foreign direct investment, play a crucial role in shaping the dynamics of Rwanda's private equity landscape.

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.