Private Equity - Sierra Leone | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$3.38m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 10.71% resulting in a projected total amount of US$3.74m by 2025.
The average size per deal in the Private Equity market amounts to US$2.63m 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 1.60 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 Sierra Leone has seen minimal decline, impacted by factors such as economic instability, political uncertainties, and limited investment opportunities. However, increasing interest from foreign investors and local entrepreneurship could provide future growth potential.

Customer preferences: In Sierra Leone, a notable shift is emerging in consumer preferences towards sustainable and locally sourced products. With a growing awareness of environmental issues and the impact of globalization, consumers are increasingly favoring businesses that prioritize ethical practices and community engagement. This trend is further fueled by the youth demographic, who are more inclined to support entrepreneurs that align with their values. Additionally, the rise of digital platforms facilitates greater access to these offerings, enhancing market potential for private equity investments focused on sustainable ventures.

Trends in the market: In Sierra Leone, the private equity market is experiencing a notable shift towards investments in sustainable businesses, driven by an increasing consumer preference for ethically sourced products. As environmental consciousness rises among consumers, particularly the youth, there is heightened demand for companies that demonstrate social responsibility and community involvement. This trend is creating fertile ground for private equity firms to invest in ventures that prioritize sustainability. Furthermore, the proliferation of digital platforms is enhancing accessibility, allowing these ethical products to reach a broader audience, thus amplifying market opportunities for investors focused on impactful business models.

Local special circumstances: In Sierra Leone, the private equity market is being shaped by a unique blend of cultural heritage and regulatory frameworks that encourage sustainable practices. The nation's strong communal ties promote investment in businesses that prioritize social impact, reflecting a cultural ethos of collective responsibility. Moreover, regulatory incentives aimed at fostering ethical entrepreneurship are attracting private equity firms to engage in sectors such as agriculture and renewable energy. This alignment of local values with investment strategies is creating dynamic opportunities for firms focused on both financial returns and social good.

Underlying macroeconomic factors: The development of the private equity market in Sierra Leone is significantly influenced by macroeconomic factors such as central bank policies, particularly interest rates, global economic trends, and the country's fiscal health. Lower interest rates set by the central bank can facilitate greater borrowing capacity for both private equity firms and the businesses they invest in, driving growth in sectors like agriculture and renewable energy. Conversely, rising interest rates may dampen investment appetite and increase financing costs, potentially slowing market activity. Additionally, the global economic landscape affects capital flows and investor sentiment, making it crucial for Sierra Leone to maintain a stable fiscal environment to attract foreign investments and bolster local private equity ventures.

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.