Ranked: Most Attractive Countries To Private Equity, Venture Capital, and Hedge Fund Investors, 2024

CEOWORLD Magazine’s latest Global Private Equity, Venture Capital, and Hedge Funds Attractiveness Index has ranked the United States as the most attractive country for private businesses among 125 economies, representing 95% of the world’s population and 99% of the Gross Domestic Product. The study indicates that despite facing operational challenges, the US is a more desirable place for private businesses compared to any other country in the world. The report pointed out that although the United States encounters problems in various governance-related areas, the relatively well-performing social responsibility and governance pillars reflect a level of trust within society that is often assumed to be much better in comparative countries.

The United States remains the most attractive country for investors, followed by the United Kingdom, Japan, Canada, and Germany to complete the top five. Regarding regions, North America, Asia, and Western Europe are the most appealing for capital investments. Out of 125 countries studied, 33 have a high attractiveness (26.4%), 29 have a medium-high attractiveness (23.2%), 43 have a medium-low attractiveness (34.4%), and the remaining 20 have a low attractiveness (16%).

The 2024 ranking takes place in an extremely delicate historical moment that poses new global challenges for companies and institutions. The Global Private Equity, Venture Capital, and Hedge Funds Attractiveness Index has been used by governments and businesses to measure country attractiveness because of its ability to provide a reliable overview of the strong and weak points of individual economies.

Most Attractive Countries To Private Equity, Venture Capital, and Hedge Fund Investors, 2024

Global Private Equity, Venture Capital, and Hedge Funds Attractiveness Index: We are pleased to present the findings of our extensive research on measuring a country’s appeal to investors. Investors in these types of funds seek to access transactions that offer favorable risk and return ratios, and they often focus on emerging regions worldwide to achieve this objective. When evaluating potential investment opportunities, investors take into account various factors such as economic activity (GDP, inflation, unemployment rate), capital market size and liquidity, taxation, investor protection, corporate governance, human and social environment (including human capital, labor market policies, and crime), and entrepreneurial culture and opportunities (including innovation capacity, ease of doing business, and high-tech industry development). Our Private Equity, Venture Capital, and Hedge Funds Attractiveness Index aims to assess all of these factors across different nations and determine the relative attractiveness of economies and regions for investment.

The Global Private Equity, Venture Capital, and Hedge Funds Attractiveness Index is determined by considering 37 Key Performance Indicators (KPIs) such as the foreign direct investment inflows in the country, the country’s investment flows abroad, the total export and import of the country in comparison to the world total, the number of foreign and domestic tourists, the number of foreign university students, the number of migrants in relation to the population, the number of people employed in high-tech sectors, the export of high-tech goods, the ICT Development Index. Additionally, the number of scientific publications and internet users as a percentage of the population, the logistics performance index, total factor productivity, rule of law index, total tax rate, gross domestic product divided by the world total, gross national product per capita, gross fixed capital formation divided by GDP, natural endowment index, graduates divided by the world total, global peace index, life expectancy at birth, the average number of school years, income distribution by the richest 10%, 5% and 1%, gender inequality index, debt to GDP ratio, inflation rate, market concentration index, people affected by natural disasters per 1,000 people, the population at risk of poverty, working poverty rate, CO2 emissions per capita, share of energy from renewable sources, energy intensity, and material consumption are also important factors to be taken into account.

Have you read?
World’s Best Countries To Invest In Or Do Business.
World’s Most Startup-Friendly Countries.
World’s Best Countries For Quality of Life.
Largest Economies Europe In 2024.
GDP of the BRICS countries (2000 to 2028).