Private Equity - Southern Africa
Southern Africa- In Southern Africa, the deal value in the Private Equity market is projected to reach US$8.65bn in 2025.
- It is anticipated that this market will show an annual growth rate (CAGR 2025-2026) of 1.72%, leading to a projected total amount of US$8.80bn by 2026.
- The average size per deal in the Private Equity market in Southern Africa is estimated to be US$27.07m in 2025.
- When considering a global comparison, it is notable that the highest deal value is achieved the United States, which stands at US$929.53bn in 2025.
- Furthermore, In the Private Equity market in Southern_Africa, the number of deals is expected to reach 325.22 by 2026.
- In Southern Africa, the Private Equity market is increasingly focusing on technology-driven startups, reflecting a shift towards innovation and digital transformation.
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.For more information on the data displayed, use the info button right next to the boxes.
- Buyouts and Leveraged Buyouts (Distressed, Secondary, Management, Carve-Outs, Asset and Distressed Acquisition, Divestitures, Debt Conversion, Privatization, P2P Transactions)
- PE Growth and Expansion (Dividend and Leveraged Recapitalizations)
- Platform Creation
- Venture Capital
- Venture Debt
- Traditional bank loans
- Digital capital raising
Deal Value
Notes: Data was converted from local currencies using average exchange rates of the respective year.
Most recent update: Aug 2025
Source: Statista Market Insights
Notes: Data was converted from local currencies using average exchange rates of the respective year.
Most recent update: Aug 2025
Source: Statista Market Insights
Average Deal Size
Most recent update: Aug 2025
Source: Statista Market Insights
Number of Deals
Most recent update: Aug 2025
Source: Statista Market Insights
Assets Under Management (AUM)
Notes: Data was converted from local currencies using average exchange rates of the respective year.
Most recent update: Aug 2025
Source: Statista Market Insights
Analyst Opinion
The Private Equity market in Southern Africa is witnessing minimal decline, influenced by factors such as economic challenges, fluctuating investor confidence, and evolving regulatory frameworks. Despite these hurdles, strategic investments continue to emerge, driving potential growth.
Customer preferences: In Southern Africa, investors are recognizing a notable shift towards sustainable and socially responsible investments, reflecting growing consumer demand for ethical practices. As awareness of environmental and social issues increases, private equity firms are adjusting their strategies to incorporate ESG (Environmental, Social, and Governance) criteria. Additionally, the rise of the middle class, combined with urbanization, is driving investment in technology and services that cater to evolving lifestyle preferences, especially among younger demographics embracing digital solutions.
Trends in the market: In Southern Africa, the Private Equity market is experiencing a shift towards investments that incorporate Environmental, Social, and Governance (ESG) criteria, driven by an increasing demand for ethical business practices. As awareness of social and environmental issues grows, private equity firms are aligning their strategies with sustainability goals. Additionally, the rise of the middle class and urbanization is fueling investments in technology and service sectors catering to digitally savvy consumers. These trends signal a significant transformation, encouraging stakeholders to prioritize responsible investment approaches for long-term growth and relevance.
Local special circumstances: In Southern Africa, the Private Equity market is shaped by diverse geographical and cultural factors, such as the region's vast natural resources and varying economic development levels. Political stability and regulatory frameworks differ significantly across countries, influencing investment strategies. Additionally, cultural attitudes towards community involvement and social responsibility drive private equity firms to focus on projects that foster local development. The unique blend of urbanization and a burgeoning middle class further encourages innovative investments in sectors like renewable energy and technology, aligning with ESG principles.
Underlying macroeconomic factors: The performance of the Private Equity market in Southern Africa is significantly influenced by macroeconomic factors such as central bank policies, particularly interest rates. Lower interest rates can stimulate investment by reducing the cost of borrowing, encouraging private equity firms to pursue leveraged buyouts and growth investments. Conversely, rising interest rates can deter investment due to higher borrowing costs and increased risk aversion. Furthermore, inflationary pressures may impact consumer spending and corporate profitability, affecting deal valuations and exit strategies. The interplay between global economic trends and national fiscal policies also shapes market dynamics, as firms seek opportunities that align with sustainable growth in the region.
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 top-down approach, building on a specific rationale for each market segment. As a basis for evaluating the Private equity market, 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, such as GDP, population, domestic credit, total investment (gross capital formation), online banking penetration, and the number of registered businesses. 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 relevant market. In this market, we use the Support Vector Regression as it is well suited for forecasting markets with a non-linear pattern. The main drivers in this market are interest rates, GDP growth, domestic credit, total investment (gross capital formation), and the number of registered businesses. The scenario analysis is based on a Monte Carlo simulation approach generating a range of possible outcomes by creating random variations in forecasted data points, based on assumptions about potential fluctuations in future values. By running numerous simulated scenarios, the model provides an estimated distribution of results, allowing for an analysis of likely ranges and confidence intervals around the forecast.Additional notes:
The market is updated twice a year in case market dynamics change.Finance
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Key Market Indicators
Notes: Based on data from IMF, World Bank, UN and Eurostat
Most recent update: Jan 2025
Source: Statista Market Insights
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