Private Equity - Senegal | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$4.07m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 0.35% resulting in a projected total amount of US$4.08m by 2025.
The average size per deal in the Private Equity market amounts to US$2.39m 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 2.30 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 Senegal is witnessing a minimal decline, influenced by factors such as economic instability, limited access to financing, and ongoing regulatory challenges, which hinder investment opportunities and overall market confidence among investors.

Customer preferences: Investors in Senegal are increasingly focusing on sustainable and socially responsible investments as consumer preferences shift towards brands that prioritize ethical practices and environmental stewardship. This growing awareness is influencing startups and established companies alike to adopt greener operations and transparent supply chains. Additionally, the youth demographic is driving demand for innovative tech solutions and services that enhance connectivity and expand financial inclusion. These trends are reshaping the investment landscape, pushing private equity firms to align their portfolios with these emerging consumer values.

Trends in the market: In Senegal, the Private Equity Market is increasingly embracing sustainable investments, with a notable shift towards funding ventures that prioritize social impact alongside financial returns. Investors are gravitating toward sectors like renewable energy and agritech, driven by a growing recognition of environmental sustainability. Furthermore, the rise of fintech startups is capturing significant interest, as they address financial inclusion for the unbanked population. This realignment of investment strategies is reshaping the competitive landscape, compelling industry stakeholders to innovate and adapt to the evolving demands of conscious consumers and the tech-savvy youth.

Local special circumstances: In Senegal, the Private Equity Market is shaped by a blend of geographical and cultural factors that set it apart from other regions. The country's diverse ecosystems foster opportunities in renewable energy, particularly solar power, which is supported by abundant sunlight year-round. Additionally, Senegal's rich agricultural heritage drives interest in agritech solutions that enhance productivity. Regulatory reforms aimed at attracting foreign investment are also pivotal, creating a more conducive environment for investors. Together, these elements are energizing the market, encouraging innovative approaches to sustainable development.

Underlying macroeconomic factors: The Private Equity Market in Senegal is significantly influenced by macroeconomic factors, particularly central bank policies and interest rates. The Central Bank's stance on interest rates plays a crucial role in shaping investment decisions, as lower rates typically enhance liquidity and encourage private equity firms to pursue more deals. Conversely, higher rates can increase the cost of borrowing, potentially dampening investment enthusiasm. Furthermore, global economic trends, such as shifts in commodity prices and inflation rates, impact domestic economic health, ultimately affecting investor confidence. As fiscal policies evolve to attract foreign investment, the interplay between these factors creates a dynamic environment for private equity growth in Senegal.

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.