Private Equity - Eastern Asia | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$100.10bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 4.37% resulting in a projected total amount of US$104.50bn by 2025.
The average size per deal in the Private Equity market amounts to US$162.00m 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 709.60 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 Eastern Asia is facing negligible growth due to factors such as economic uncertainty, regulatory challenges, and cautious investor sentiment. These elements hinder strong investment performance, limiting opportunities for expansion in the region.

Customer preferences: In Eastern Asia, consumer preferences are shifting towards sustainability and socially responsible investing, prompting Private Equity firms to reassess their portfolios. There is a growing demand for investments in green technologies and sustainable practices, reflecting heightened environmental awareness among younger demographics. Additionally, lifestyle changes, influenced by urbanization and a focus on health, have led to increased interest in wellness-focused businesses. This trend drives Private Equity firms to target ventures that align with these evolving consumer values, fostering innovation in the market.

Trends in the market: In Eastern Asia, the Private Equity market is increasingly gravitating towards investments in sustainable infrastructure, as firms prioritize ESG (Environmental, Social, and Governance) criteria in their decision-making processes. Renewable energy projects, particularly solar and wind, are gaining momentum, driven by government incentives and societal demand for cleaner energy. Additionally, the rise of e-commerce has prompted investments in sustainable logistics solutions. This shift not only aligns with investor values but also positions firms to capitalize on emerging markets, ensuring long-term growth and resilience amid evolving economic landscapes.

Local special circumstances: In Eastern Asia, the Private Equity market is uniquely influenced by local factors such as a strong government focus on sustainable development and a culturally ingrained value for community welfare. Countries like South Korea and Japan are pioneers in adopting advanced technologies for green infrastructure, enhancing their appeal for investment. Furthermore, regulatory frameworks favoring ESG practices are becoming more prevalent, enabling smoother capital flow into eco-friendly projects. This combination of supportive policies and cultural emphasis on sustainability creates a dynamic landscape that attracts investors seeking long-term impact.

Underlying macroeconomic factors: The Private Equity market in Eastern Asia is significantly influenced by macroeconomic factors such as central bank policies, particularly interest rates, alongside broader global economic trends. Lower interest rates, often implemented to stimulate economic growth, can enhance access to capital, making private equity investments more appealing. In a low-rate environment, investors seek higher returns through alternative assets, including private equity. Conversely, rising interest rates can lead to tighter financing conditions, potentially dampening investment activity. Additionally, national economic health, alongside fiscal policies promoting business innovation, further shapes the private equity landscape, attracting investments that align with growth sectors.

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.