Private equity (PE) activity was up 10-fold in deal value and 1.6 times in deal volume for the 2Q2024 compared to the previous quarter, according to the EY Quarterly Private Equity Update: Asean 2Q2024 report.
For the second quarter of the year, there were 28 deals worth US$5.6 billion ($7.52 billion) deployed across Southeast Asia, up from the 17 deals worth US$586 million in the quarter before.
Infrastructure deals made up 78% of PE investments by value, followed by real estate at 12% and technology at 4%. The report finds that Singapore and Malaysia contributed to the majority of deals, representing some 92% of total PE value and 57% in PE deal volume in 2Q2024.
EY finds that there also has been an “uptick” in exit and fundraising activity, as PE secondaries are expected to become a popular exit route in Southeast Asia.
There were nine PE-backed exits valued at US$1.1 billion, compared with four worth US$255 million in the quarter before. EY says that investors are increasingly exploring options, including general partner (GP)-led secondaries, platforms and continuation funds.
In fundraising, there were two PE fund closes in 2Q2024 in Southeast Asia, raising a cumulative capital of US$5.4 billion, compared with two funds that raised US$574 million in the previous quarter. As well, PE deals accounted for 16% of overall M&A deal volume this quarter compared with 9% the previous quarter.
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Luke Pais, EY Asia Pacific PE leader says that new investments and exit activity will continue to build up in the months ahead. “As expected, PE activity in Southeast Asia continues to gain momentum, and we expect deal activity to be more broad based. Moderation in interest rates should further strengthen deal activity,” he concludes.
