Private Equity - Zimbabwe | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$5.70m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 15.87% resulting in a projected total amount of US$6.60m by 2025.
The average size per deal in the Private Equity market amounts to US$1.72m 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 3.46 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 Zimbabwe is experiencing minimal decline, influenced by economic instability, regulatory challenges, and limited access to capital. However, opportunities for investment remain, driven by a growing entrepreneurial spirit and potential for substantial returns.

Customer preferences: Investors in Zimbabwe's Private Equity market are observing a notable shift toward sustainable and socially responsible investments, reflecting changing consumer preferences that prioritize ethical practices and environmental stewardship. The younger demographic, particularly Millennials and Gen Z, are increasingly inclined to support businesses that align with their values, driving demand for green technologies and socially conscious products. Additionally, as urbanization rises, there is a greater focus on digital solutions, presenting opportunities in e-commerce and fintech sectors that cater to evolving lifestyles and consumer habits.

Trends in the market: In Zimbabwe, the Private Equity market is increasingly gravitating towards sustainable investments, with a surge in funding directed at environmentally responsible startups and social enterprises. This trend is bolstered by a young consumer base that prioritizes ethical business practices and environmental sustainability. Furthermore, the rise of urbanization is sparking growth in digital solutions, particularly in the e-commerce and fintech sectors, which cater to the demands of tech-savvy consumers. As investors recognize the potential for both social impact and profitability, industry stakeholders may need to adapt strategies to align with these evolving consumer values and market dynamics.

Local special circumstances: In Zimbabwe, the Private Equity market is shaped by unique geographical, cultural, and regulatory factors that set it apart from other regions. The country's rich natural resources and diverse ecosystems foster a growing interest in sustainable ventures, attracting investors focused on environmental conservation. Culturally, the emphasis on community-driven initiatives encourages social enterprises that prioritize local impact. Additionally, regulatory frameworks, while still evolving, are becoming more supportive of foreign investments, creating a conducive environment for private equity to thrive alongside a burgeoning entrepreneurial spirit.

Underlying macroeconomic factors: The Private Equity market in Zimbabwe is significantly influenced by overarching macroeconomic factors, particularly central bank policies and interest rates. A stable interest rate environment encourages investment by reducing borrowing costs for businesses seeking capital through private equity. Conversely, high interest rates can deter investments, as the cost of financing increases. Additionally, global economic trends, such as commodity price fluctuations and foreign capital flows, play a vital role in shaping investor confidence in Zimbabwe's market. Furthermore, the country’s fiscal policies and macroeconomic stability, including inflation rates and currency fluctuations, directly affect the performance and attractiveness of private equity investments, highlighting the interdependence of local and global economic conditions.

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.