Private capital boom positions Singapore as M&A hub for complex deals

SINGAPORE – A growing wave of private capital is fuelling mergers and acquisitions (M&A) across South-east Asia, with Singapore emerging as a regional hub for increasingly complex cross-border deals, experts said.

Large family offices of the super-rich who made their wealth from innovation have joined corporates and strategic buyers, reshaping deal structures, risk allocations and exit routes across the region, said Goldman Sach’s global head of M&A, Mr Stephan Feldgoise.

M&As in 2026, he added, will be shaped by “technology, globalisation and ambition”.

Private capital funds are actively exploring a wider range of deals than before, said Mr Jamie McLaren, a Singapore-based partner at global law firm Clifford Chance.

According to estimates, private equity, private credit and privately held assets in infrastructure and real estate are projected to grow from US$15 trillion (S$19 trillion) today to US$23 trillion by 2029.

Private equity alone has grown to represent around 40 per cent of the M&A market, while private credit – a US$2.1 trillion asset class that is expected to more than double by 2030 – continues to gain steam.

Many private equity firms have established their regional base in Singapore, leveraging the Republic’s proximity to South-east Asia’s fast-growing markets and robust financial ecosystem.

Private capital is influencing how deals are structured, Mr McLaren said.

Family offices usually channel their money through private capital funds instead of buying assets directly. 

Private equity deals are more focused on creating “future-proof” structures that let investors enter and exit smoothly while adhering to regulatory compliance.

They look for provisions to ensure deal structures that are easy to transfer to new buyers, financing terms that do not require immediate repayment when ownership changes, and management incentive plans that ensure business continuity, he added.

Private equity investors also tend to use bank and private credit leverage more heavily than strategic corporate buyers, Mr McLaren said.

Singapore’s stability and well-developed market conditions continue to attract steady deal activity, particularly in sectors like real estate and logistics, he said. 

On the larger deals in the region, private equity investors tend to acquire majority or significant minority stakes with a local partner – typically a national conglomerate that brings valuable expertise and relationships on the ground. 

In recent years, the Philippines has emerged as a standout market.

Its private equity and venture deals climbed to well over US$1 billion in 2024 and its share of regional deal value rose sharply on strong macro fundamentals and a growing middle class.​

When it comes to managing deal risk, Singapore’s legal and institutional frameworks offer a clear edge. Its law and the Singapore International Arbitration Centre have become the preferred standard and dispute resolution forum.

“International private equity funds consistently choose Singapore for the majority of deals because of the stability and trust they provide, even when the underlying business sits outside Singapore,” Mr McLaren said.

Many cross-border M&As also involve Singapore holding companies because of the country’s stable tax regime and simpler share transfer processes – factors that bolster deal certainty, he said.

Globally, private capital, including private equity and insurance capital, is set to play an even more prominent and strategic role in financial services M&A, offering liquidity and shaping deal structures in a major financial hub like Singapore, Clifford Chance said in a recent report.

Another significant trend in M&A is the increasing role of major pension funds, such as Australia’s superannuation funds, which are shifting to take larger, more active stakes in deals, and are expected to drive large-scale transactions in 2026.

Foreign investors are expected to double down on their investment strategies in China this year, driving up M&As.

The law firm said global corporations are streamlining portfolios, exiting non-performing lines to focus on areas aligned with China’s growth. Target sectors include industrials, electric vehicles and smart mobility, pharmaceutical and healthcare.

Middle Eastern investors are actively looking for opportunities to partner with Chinese investors particularly in energy, technology and advanced manufacturing.

Artificial intelligence is expected to continue to drive tech sector deals in 2026. Supply chain vulnerabilities such as chip shortages and cyberattacks are also shaping M&A strategies, the report said. 

Goldman Sachs chairman and chief executive David Solomon expects 2026 to be a better year for dealmaking than 2025 “unless there is a big exogenous event that significantly shifts sentiment”.

“I can see through our backlog and our activity levels and our client dialogues a very robust environment for dealmaking,” Mr Solomon said on Jan 20.

The M&As will be driven by strategic repositioning and building for scale, Mr Feldgoise added.