Private Equity - Uruguay | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$6.74m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 8.19% resulting in a projected total amount of US$7.29m by 2025.
The average size per deal in the Private Equity market amounts to US$1.83m 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 3.52 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 Uruguay is witnessing a slight decline, influenced by factors such as economic uncertainty, limited investment opportunities, and shifts in global market trends, which are challenging the growth potential for investors in the region.

Customer preferences: Investors in the Private Equity market in Uruguay are increasingly focusing on sustainable and socially responsible investments, reflecting a growing consumer preference for eco-friendly products and practices. This trend is influenced by a younger demographic that prioritizes ethical consumption and corporate transparency. Additionally, there’s a notable shift towards technology-driven solutions across various sectors, encouraging investments in startups that leverage innovation to address local challenges. The evolving lifestyle trends underscore the importance of adaptability for investors seeking growth.

Trends in the market: In Uruguay, the Private Equity market is seeing a surge in investments aligned with environmental, social, and governance (ESG) criteria, as investors seek to build portfolios that reflect sustainable practices. There is a growing emphasis on funding companies that prioritize ethical and eco-friendly operations, driven by a demographic shift toward younger consumers valuing corporate responsibility. Moreover, technology-focused investments are on the rise, particularly in sectors harnessing innovation to tackle local socioeconomic challenges. This evolving landscape not only influences investment strategies but also compels industry stakeholders to adopt more transparent and adaptable business models to meet changing consumer expectations.

Local special circumstances: In Uruguay, the Private Equity market is uniquely shaped by its small but stable economy and a strong regulatory framework that fosters investor confidence. The country’s diverse agricultural base and emphasis on sustainability attract investments in agritech and renewable energy. Culturally, there is a collective push towards social equity, prompting funds to support local ventures that address inequality and community development. Additionally, Uruguay’s political stability enhances its appeal, making it a safe haven for foreign investors amid regional volatility. This confluence of factors distinctly positions Uruguay's Private Equity landscape within the broader Latin American context.

Underlying macroeconomic factors: The performance of the Private Equity market in Uruguay is significantly influenced by overarching macroeconomic factors, particularly central bank policies and interest rates. With the central bank's focus on maintaining stable inflation and fostering economic growth, interest rates play a crucial role in shaping investment decisions. Lower interest rates typically enhance the attractiveness of private equity by reducing borrowing costs for firms and investors, thereby facilitating capital deployment into growth-oriented ventures. Conversely, rising rates could dampen investment activity as financing becomes more expensive, potentially leading to a slowdown in deal-making. Additionally, global economic trends, such as commodity price fluctuations and international capital flows, further impact the dynamics of the private equity landscape in Uruguay.

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.