Private Equity - Togo | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$3.62m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 10.31% resulting in a projected total amount of US$3.99m by 2025.
The average size per deal in the Private Equity market amounts to US$2.65m 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 1.77 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 Togo has witnessed a minimal decline, influenced by challenges such as limited access to capital, economic instability, and a lack of investor confidence. Despite these hurdles, there remains potential for gradual recovery and growth in the sector.

Customer preferences: In Togo, there is a growing interest in sustainable and socially responsible investment opportunities, reflecting a shift in consumer preferences towards ethical business practices. Younger investors are increasingly valuing companies that prioritize environmental sustainability and community engagement, indicating a demographic shift that favors impact-driven initiatives. Additionally, the rise of local entrepreneurship is prompting private equity firms to look for innovative startups that align with these values, creating new avenues for investment in the evolving market landscape.

Trends in the market: In Togo, the Private Equity market is experiencing a notable shift towards investments that emphasize sustainability and social impact. Increasingly, local private equity firms are focusing on startups that prioritize environmental conservation and community welfare, reflecting the values of a younger, socially-conscious investor demographic. This trend is fostering a more vibrant entrepreneurial ecosystem, as innovative businesses emerge to address local challenges. Such transformations not only enhance investment opportunities but also drive broader economic growth, prompting traditional investors to reconsider their strategies to align with these evolving priorities.

Local special circumstances: In Togo, the Private Equity market is shaped by a unique blend of cultural values, regulatory frameworks, and geographical advantages. The country's rich tradition of community-based entrepreneurship fosters collaboration and innovation among local startups. Geographically, Togo's strategic location as a gateway to West Africa enhances access to regional markets, attracting investors seeking diverse opportunities. Additionally, supportive government policies aimed at promoting SMEs encourage foreign investment, while a burgeoning youthful population demands sustainable business practices, redefining traditional investment strategies.

Underlying macroeconomic factors: The Private Equity market in Togo is significantly influenced by macroeconomic factors, particularly central bank policies and interest rates. Lower interest rates typically enhance access to capital, making it easier for private equity firms to raise funds and invest in local startups. Conversely, rising interest rates can lead to higher borrowing costs and reduced investment appetite, stalling growth in the private equity sector. Additionally, global economic trends, such as foreign direct investment flows and commodity prices, can impact Togo's economic health, affecting investor confidence and capital allocation strategies. Overall, a stable economic environment, characterized by predictable fiscal policies, fosters a robust private equity landscape by attracting both domestic and international investors.

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.