PE deal value plunges 52% in 2022 in SEA: Bain report

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Deal value in Southeast Asia’s private equity (PE) market fell 52% year on year in 2022 on the back of uncertain economic outlook and challenging exit conditions, according to a report from Bain & Company.

Deal count also plunged 15% year on year, according to the Southeast Asia Private Equity Report 2023.

Still, the report notes that Southeast Asia remains an attractive place to deploy capital in the long term as it’s more resilient compared to the rest of Asia Pacific.

“The market fundamentals are there, and investors will be able to find attractive opportunities,” said Suvir Varma, senior advisor of Bain’s global PE practice. However, he added that competition will be fierce for these assets.

Singapore and Indonesia accounted for over 80% of Southeast Asia’s deal value and deal count, with internet and tech as the primary investor sector in each country in 2022. Both countries also saw highest numbers of exits during the year, with the region seeing an overall decline of 46% in exit value at US$6.6 billion.

Ongoing geopolitical tensions between the US and China will continue to create opportunities for Southeast Asia’s businesses, according to Bain.

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