Private Equity - Taiwan | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$21.66m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 27.80% resulting in a projected total amount of US$27.69m by 2025.
The average size per deal in the Private Equity market amounts to US$3.61m 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 6.08 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 Taiwan is witnessing a minimal decline, influenced by factors such as economic uncertainties, cautious investor sentiment, and regulatory challenges. Despite these hurdles, opportunities in tech and healthcare sectors continue to attract interest and investment.

Customer preferences: In Taiwan, there is a notable shift towards sustainable and environmentally-friendly investment opportunities, reflecting a growing consumer preference for corporations committed to corporate social responsibility. As younger demographics prioritize ethical sourcing and eco-friendly practices, private equity is increasingly funnelling resources into sustainable startups and green technologies. Additionally, urbanization is driving demand for smart city solutions and digital services, compelling investors to adapt strategies that align with these evolving lifestyle factors and cultural values.

Trends in the market: In Taiwan, the Private Equity Market is increasingly gravitating towards investments in sustainable technologies and eco-conscious enterprises, driven by heightened awareness of environmental issues among consumers. The rise of impact investing is reshaping funding strategies, with a growing emphasis on social responsibility and ethical sourcing. Additionally, the rapid urbanization of Taiwanese cities is fueling interest in smart city innovations, such as IoT solutions and efficient energy systems. These trends not only align with cultural values but also present unique opportunities for industry stakeholders to enhance their portfolios and drive meaningful change in the market.

Local special circumstances: In Taiwan, the Private Equity Market is significantly influenced by its unique cultural emphasis on community and harmony, driving investments towards socially responsible enterprises. The island's geographical vulnerability to natural disasters has heightened the focus on sustainable technologies and resilience-focused innovations. Additionally, Taiwan's robust regulatory framework encourages transparency and sustainability, attracting global investors. This blend of cultural values, environmental challenges, and supportive regulations shapes investment strategies, fostering an ecosystem that prioritizes impact and social equity within the market.

Underlying macroeconomic factors: The Private Equity Market in Taiwan is substantially shaped by overarching macroeconomic factors such as interest rates determined by the central bank, which directly influence borrowing costs and investment decisions. Low interest rates encourage private equity firms to leverage financing, making acquisitions more feasible and driving deal activity. Conversely, rising rates may dampen market enthusiasm, as higher costs can deter investment in leveraged buyouts. Additionally, Taiwan's national economic health, characterized by stable GDP growth and export performance, enhances investor confidence, while global economic trends, including trade dynamics and market volatility, further impact private equity strategies within the region.

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.