Private equity briefing: Southeast Asia – July 2017

A roundup of private equity deals and capital activities in the quarter as well as trends that are shaping investment decisions today

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1Q17 private equity (PE) deal activity continued to remain robust amid increased fund-raising.

The overall value of PE deals completed in 1Q17 was US$2.2b, across the 33 deals closed. The quarter’s performance has been relatively aligned with the previous two quarters. Singapore deals comprised approximately 45% of PE activity in 1Q17, led by the privatization of ARA Asset Management. We expect the robust deal activity to continue for the rest of the year.

In addition, PE fundraising has been on the rise with US$2.8b funds raised in 1Q17 compared to a total of US$2.3b raised across the year 2016. Amid high global liquidity, there have been large Asia-Pacific-focused funds raised by KKR and TPG. In addition, Southeast Asia-focused fundraising has been active as the region remains one of the higher growth regions in the world.

In this issue, we share our perspectives the consumer products sector, which has been one of the favorite sectors of investment for PE over the last decade and a half. While there is still a lot of opportunity in this sector given the long-term theme of rising middle class, PEs need to focus on strong operational value creation to drive value.