Private Equity - Southeast Asia | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$2.24bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 21.65% resulting in a projected total amount of US$2.72bn by 2025.
The average size per deal in the Private Equity market amounts to US$23.99m 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 95.90 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 Southeast Asia is witnessing minimal decline, influenced by factors like evolving investment trends, regulatory changes, and a focus on tech-driven startups, which continue to attract interest despite challenging economic conditions.

Customer preferences: In Southeast Asia, consumers are increasingly gravitating towards sustainable and ethically produced products, reflecting a growing awareness of environmental issues and social responsibility. This shift has sparked interest in investments focused on green technologies and sustainable practices within the private equity market. Additionally, as urbanization rises and lifestyles evolve, there is a notable preference for digital solutions, including e-commerce and on-demand services, which cater to the fast-paced, tech-savvy population seeking convenience and efficiency in their daily lives.

Trends in the market: In Southeast Asia, the private equity market is experiencing a surge in investments directed towards sustainable and ethical enterprises, driven by a heightened consumer awareness of environmental and social issues. This trend is fostering capital allocation towards green technologies, renewable energy, and sustainable agriculture. Simultaneously, increased urbanization is propelling the demand for digital solutions, with private equity firms focusing on e-commerce platforms and innovative tech startups that streamline services. These movements signify a critical shift in investment strategies, compelling industry stakeholders to adapt to changing consumer preferences and align their portfolios with sustainability and digital transformation initiatives.

Local special circumstances: In Southeast Asia, the private equity market is uniquely influenced by diverse geographical, cultural, and regulatory factors. The region's rich tapestry of cultures fosters a strong emphasis on community-driven initiatives, urging investors to prioritize socially responsible ventures. Additionally, varying regulatory landscapes across countries, from lax to stringent, shape investment approaches, requiring firms to navigate compliance intricacies. Moreover, natural disasters common to the region heighten the focus on resilient and sustainable technologies, driving private equity towards innovations in disaster management and climate resilience solutions.

Underlying macroeconomic factors: The Private Equity market in Southeast Asia is significantly impacted by overarching macroeconomic factors, particularly central bank policies and interest rates. As central banks adjust interest rates to manage inflation and stimulate economic growth, the cost of capital for private equity firms fluctuates, influencing their investment strategies. Lower interest rates typically make borrowing cheaper, encouraging investment in high-growth startups and driving competition for attractive deals. Conversely, rising interest rates may lead to tighter financing conditions, prompting firms to adopt a more cautious approach. Additionally, national economic health indicators, such as GDP growth and consumer confidence, further shape investment decisions, as robust economic performance enhances the attractiveness of private equity opportunities.

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.