Singapore gets lion’s share of S-E Asia private equity in 2024, but tariff risks loom
Sign up now: Get ST's newsletters delivered to your inbox
The Republic secured US$7.6 billion (S$10.1 billion) of capital investment in companies that are not publicly traded.
ST PHOTO: CHONG JUN LIANG
Follow topic:
SINGAPORE - Singapore took the lead in South-east Asia’s private equity (PE) market in 2024 amid a rise in deal value, but US President Donald Trump’s tit-for-tat tariffs
The Republic secured US$7.6 billion (S$10 billion) of capital investment in companies that are not publicly traded, nearly half of the US$16 billion (S$21.1 billion) raised across South-east Asia, said global management consultancy Bain & Company in its South-east Asia Private Equity Report 2024.
The figure is an increase from US$4.2 billion in 2023, when the region raised US$9.9 billion.
Singapore also led the region in deal count, with 60 of the 98 transactions in 2024, down slightly from 67 out of 115 in 2023.
Bain noted that the rise in deal value in 2024 was driven largely by Singapore and Indonesia, buoyed by large investments in digital infrastructure.
Exit activity expanded with a 30 per cent increase in value, driven by deals in Singapore and Malaysia.
But ageing portfolios – where investments are held longer due to poor market conditions – and a subdued initial public offering market continue to slow exits across the region.
“Our report shows that investors in South-east Asia are concerned about exit difficulties, fund-raising challenges and the availability of quality deals,” said Mr Usman Akhtar, head of Bain’s South-east Asia PE practice, who is based in Singapore.
“The recently announced tariffs are adding another layer of complexity to deal-making in South-east Asia... We are seeing our clients proactively assess the first- and second-order impact of tariffs on their portfolios in the region.”
The report noted that digital infrastructure – particularly data centres and telecommunications towers – emerged as the top-performing sector for PE investments in South-east Asia in 2024.
The financial services sector, especially fintech, attracted more investor attention in 2024, with growth in South-east Asia outpacing the broader Asia-Pacific region.
Energy and natural resources also saw a surge in deal value, particularly in utilities and renewables.
Bain also highlighted that private education remains underdeveloped in South-east Asia, though structural trends point to significant growth potential.
“As geopolitical shifts and export uncertainties continue to shape the global investment climate, the South-east Asian PE market is expected to focus on building exit-ready portfolios, doubling down on value creation and maintaining agility,” said Mr Suvir Varma, advisory partner at Bain’s global PE practice.
“Competition is intense, underlining the growing need for differentiation and a clear investment sweet spot.”
Meanwhile, a separate report by professional services firm Deloitte noted that South-east Asia is still well positioned for growth, driven by factors such as a young and growing population, as well as rapid urbanisation and digital transformation, all of which continue to attract both regional and international PE investment.
“PE investors are closely scrutinising the regulatory and trade policies of the new US administration, particularly in relation to their potential impact on deal-making in China, and the ripple effects this may have across South-east Asia,” it said.
“As capital allocations to China stutter as investors seek alternative investment destinations, South-east Asia is well positioned to gain investment momentum.”
Deloitte noted that some of the largest PE investments in 2024 involved Singapore-based firms, including ST Telemedia Global Data Centres, which raised US$1.3 billion from global investment firm KKR and Singtel, and PropertyGuru, which was acquired by Swedish PE firm EQT for US$1.1 billion.
Exits include local traditional medicine brand Eu Yan Sang, which was sold to Japanese trading house Mitsui & Co and Rohto Pharmaceutical via a special purpose entity for US$511 million.
Deloitte’s report, titled South-east Asia Edition Of The PE 2025 Almanac, also noted that Singapore is poised to maintain its dominance in South-east Asia’s mergers and acquisitions market.
It said that investment in artificial intelligence-related sectors, particularly data centres, is expected to remain a key focus in 2025.
“Singapore’s strategic location, stable political environment, robust economic outlook and leadership in digital transformation make it an attractive destination for both regional and global capital,” it added.
