Private Equity - Serbia

  • Serbia
  • The deal value in the Private Equity market is projected to reach US$6.06m in 2024.
  • It is expected to show an annual growth rate (CAGR 2024-2025) of 9.90% resulting in a projected total amount of US$6.66m by 2025.
  • The average size per deal in the Private Equity market amounts to US$1.84m in 2024.
  • From a global comparison perspective it is shown that the highest deal value is reached in the United States (US$594.00bn in 2024).
  • In the Private Equity market, the number of deals is expected to amount to 3.31 by 2025.
 
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Analyst Opinion

The Private Equity market in Serbia is witnessing minimal decline, influenced by factors like economic uncertainty, the evolving regulatory landscape, and fluctuations in investor confidence, which are reshaping investment strategies and opportunities in the region.

Customer preferences:
The Private Equity market in Serbia is increasingly aligning with sustainable investment trends, as investors show a growing preference for environmentally responsible initiatives. This shift is influenced by a younger, more eco-conscious demographic that prioritizes sustainability in their purchasing decisions. Additionally, the rise of tech-savvy entrepreneurs is fostering innovation in sectors like renewable energy and green technologies, compelling private equity firms to adapt their strategies and focus on ventures that align with these evolving consumer values.

Trends in the market:
In Serbia, the Private Equity market is experiencing a notable shift towards sustainable investing, with firms increasingly seeking opportunities in environmentally responsible initiatives. As younger generations become more influential, their demand for green technologies and renewable energy projects is reshaping investment priorities. Furthermore, the emergence of tech-savvy entrepreneurs is driving innovation in sustainable business models, compelling private equity investors to align their portfolios with these evolving market dynamics. This shift not only enhances the financial viability of investments but also strengthens brand reputations, signaling a transformative era for industry stakeholders.

Local special circumstances:
In Serbia, the Private Equity market is shaped by a blend of historical and cultural factors that influence investment trends. The country's transition from a centralized economy to a market-oriented one has fostered a growing appetite for innovative projects. Additionally, Serbia's strategic geographic location as a gateway between East and West facilitates access to diverse markets, attracting international investors. Moreover, regulatory improvements aimed at enhancing transparency and investor protection are boosting confidence. These local dynamics are steering private equity towards sustainable initiatives, catering to an emerging consumer base that prioritizes social and environmental responsibility.

Underlying macroeconomic factors:
The Private Equity market in Serbia is significantly influenced by overarching macroeconomic factors, particularly central bank policies related to interest rates. Low interest rates create a conducive borrowing environment for businesses, facilitating leveraged buyouts and capital investments that drive growth in the private equity sector. Conversely, rising rates may heighten borrowing costs, dampening investment enthusiasm and slowing deal-making activity. Additionally, Serbia's national economic health, characterized by GDP growth and employment rates, impacts investor confidence. Global economic trends, such as fluctuations in demand for goods and services, also affect the attractiveness of Serbian investments, further shaping the private equity landscape.

Methodology

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.

Overview

  • Deal Value
  • Average Deal Size
  • Number of Deals
  • Assets Under Management (AUM)
  • Analyst Opinion
  • Methodology
  • Key Market Indicators
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