Private Equity - Sweden | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$8.00bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 4.41% resulting in a projected total amount of US$8.35bn by 2025.
The average size per deal in the Private Equity market amounts to US$47.33m 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 204.40 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 Sweden is navigating a period of minimal decline, influenced by factors like fluctuating economic conditions, cautious investor sentiment, and increased competition for quality assets, which continue to shape its growth trajectory.

Customer preferences: Investors in Sweden's Private Equity market are increasingly focusing on sustainable and socially responsible investments, reflecting a growing consumer preference for companies that prioritize environmental, social, and governance (ESG) factors. This shift is driven by a younger demographic that values transparency and ethical practices. As awareness of climate change and social issues rises, funds that integrate sustainability into their investment strategies are witnessing heightened interest, shaping the landscape of future investments and asset evaluations.

Trends in the market: In Sweden, the Private Equity market is experiencing a notable shift towards impact investing, with funds increasingly prioritizing companies that demonstrate strong ESG performance. This trend is fueled by heightened awareness among investors about the importance of sustainable practices and ethical governance. Simultaneously, the demand for transparency in investment processes has led to greater scrutiny of fund operations. As this focus on sustainability continues to grow, industry stakeholders, including fund managers and institutional investors, must adapt their strategies to align with these evolving expectations, shaping the future of capital allocation in the region.

Local special circumstances: In Sweden, the Private Equity market is uniquely influenced by the country’s strong commitment to sustainability and social welfare, deeply embedded in its cultural fabric. The emphasis on environmental responsibility is reinforced by stringent regulations, such as the Sustainable Finance Disclosure Regulation (SFDR), which mandates transparency in ESG reporting. Additionally, Sweden’s highly educated population and progressive values foster a demand for investments that contribute positively to society. This confluence of cultural, geographical, and regulatory factors differentiates Sweden's Private Equity landscape, propelling innovative approaches to sustainable investing.

Underlying macroeconomic factors: The Private Equity market in Sweden is significantly shaped by overarching macroeconomic factors, particularly central bank policies and interest rates. The Riksbank's monetary policy, which aims to maintain low and stable inflation, influences borrowing costs for private equity firms. Lower interest rates enhance access to capital, encouraging leveraged buyouts and investments in emerging companies. Conversely, rising rates may dampen investment activity as financing becomes more expensive. Additionally, Sweden’s robust economic growth and stable labor market bolster investor confidence, further attracting capital into private equity. These dynamics create a unique environment for sustainable investment strategies that align with Sweden's socio-economic goals.

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.