Strong M&A appetite for non-tech firms in Asia remains as new investors emerge

The recent boom in start-ups in Singapore, particularly in fintech, has made the country a lot more visible to investors, particularly venture capitalists. Yet, there are not that many opportunities for investors. Tanguy Lesselin, CEO and one of four founders of deal-matching service Finquest, says while there is appetite for tech companies in premium IT services, for instance, the supply does not quite match the demand.

“There is money, what we call dry powder. There is appetite to invest,” Lesselin says. “Now, it doesn’t mean that all projects are going to be financed. Obviously, investors are very discriminating when it comes to where they put their money, so supply needs to increase. When you look at fintech, healthcare investments, they are becoming more and more global. The question is whether the supply is competitive compared with other markets.

Nevertheless, investors outside Asia are on the hunt for assets in the region, and while the boom in tech-related ventures continues, funds are still going to a wide range of brickand- mortar businesses. The appetite for mergers and acquisitions remains strong, as investors look for growth amid a lacklustre global economy and disruptions from technology to traditional business models.

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