Private Equity - Worldwide

Worldwide

The deal value in the Private Equity market is projected to reach €1.00tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 7.00% resulting in a projected total amount of €1.07tn by 2025.
The average size per deal in the Private Equity market amounts to €97.81m in 2024.
From a global comparison perspective it is shown that the highest deal value is reached in the United States (€550,900.00m in 2024).
In the Private Equity market, the number of deals is expected to amount to 12.87k by 2025.

Mercado

Región

Comparación de regiones

Moneda

Analyst Opinion

The Private Equity market worldwide is facing a subdued decline, influenced by factors such as economic uncertainty, rising interest rates, and increased competition for deals. These challenges have tempered investor enthusiasm and slowed capital deployment across regions.

Customer preferences: Investors in the Private Equity market are increasingly focusing on sustainable and impact-driven investments, reflecting a shift in consumer preferences towards environmentally and socially responsible practices. This trend is fueled by younger generations who prioritize ethical considerations and transparency in business operations. Additionally, there is a growing demand for innovative technology solutions that enhance operational efficiency, as firms look to adapt to evolving market dynamics and consumer behaviors across diverse demographics.

Trends in the market: In the Private Equity market globally, there is a noticeable shift towards investing in sustainable and impact-driven portfolios, with firms increasingly aligning their strategies with Environmental, Social, and Governance (ESG) criteria. In North America, investors are prioritizing funds that support clean energy and social equity, while Europe is seeing a surge in green technology investments that address climate challenges. In Asia, the rise of impact investing is compelling firms to consider social outcomes alongside financial returns, reshaping traditional investment criteria. This alignment with consumer values holds significant implications for industry stakeholders, as it opens new markets and attracts a broader investor base focused on long-term value creation.

Local special circumstances: In Africa, the Private Equity market is uniquely influenced by the continent's youthful demographic and rapid urbanization, fostering a vibrant startup ecosystem focused on technology and innovation. Local firms are capitalizing on mobile financial solutions to enhance access to capital, particularly in underserved regions. In the Middle East, geopolitical factors and investment diversification have led to increased interest in sectors like renewable energy and fintech, with governments actively supporting ventures that align with Vision 2030 initiatives. These regional dynamics are reshaping investment strategies and creating opportunities tailored to local needs.

Underlying macroeconomic factors: The Private Equity market is significantly shaped by macroeconomic factors such as interest rates, economic growth, and market liquidity. Central bank policies play a crucial role, as low interest rates typically encourage borrowing and investment in startups, enhancing capital availability. Conversely, rising interest rates may deter investment, tightening financial conditions and increasing the cost of capital for firms. Additionally, strong national economic health and robust fiscal policies create an enabling environment for private equity, fostering investor confidence. Global economic trends further influence these dynamics, as shifts in capital flows and investor sentiment can impact deal-making activity and valuations across regions.

Methodology

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.