Private equity deal value in Southeast Asia sees decline in Q2 2025 due to absence of mega deals

• US$1b was deployed across 22 PE-backed deals in Q2 2025, with transactions centered on financial services, technology and health care
• PE-backed exits were valued at US$398m across eight deals 

SINGAPORE, 30 JULY 2025. Private equity (PE) deal value in Southeast Asia (SEA) continued to drop in Q2 2025, extending the downward trend seen in previous quarters. There were 22 PE-backed investments worth US$1b, compared with 20 deals worth US$5.3b in Q2 2024. While deal volume went up by 10% year-on-year (YOY), deal value saw a significant drop over the same period due to the absence of mega deals that were seen in 2024.

This is according to the EY Southeast Asia Private Equity Pulse (Q2 2025), which provides a roundup of PE deals along with capital activities across major sectors in the region, from April to June 2025.

In Q2 2025, the financial services sector accounted for 29% of these investments, primarily driven by investors’ sustained focus on capitalizing emerging technology transformation and growth in consumer demand. Technology (28%) and health care (27%) also saw strong activity. Singapore and Vietnam witnessed the most activity in the quarter, generating over 55% of deal volume and 74% in deal value across the region.

For exits, SEA recorded eight deals generating US$398m in realized proceeds. With IPO activity still muted, secondary transactions have picked up pace, fueled by growing liquidity needs and recalibrated exit strategies.

Luke Pais, EY-Parthenon Asia-Pacific Private Equity Leader, says: 
“While the short-term headwinds on mergers and acquisitions (M&A) persist, it also serves as a catalyst for companies in SEA to explore new growth pathways and build operational excellence. PE firms that can bring such value to their current and upcoming portfolio companies will be greatly desired and will prove to be successful in securing both new deals and higher return on exits.”

Impediments to PE transactions 

The lack of clarity around future trade policies and the risk of portfolio impairments from disrupted trade flows have led to increased investor caution. Even companies not directly exposed to trade tensions are seeing potential knock-on effects, as consumer confidence and demand sentiment come under pressure. 

According to the EY Global PE Pulse Survey (Q2 2025), globally, 76% of general partners (GPs) indicated that tariff-driven uncertainty and macroeconomic outlook are significant impediments to the transactions markets.

Tariffs to disrupt and reshape regional PE opportunities

Nonetheless, there are opportunities for PE firms such as:

• Growth capital for companies in beneficiary nations scaling operations, consolidation plays, investment in supply chain services and operational improvement mandates

• Expansion of private credit for liquidity needs, special situations (recapitalizations and distressed debt) and financing for regional expansion

• Significant investment needed in transportation, energy (including renewables) and digital infrastructure in nations absorbing relocated manufacturing, creating opportunities for infrastructure funds and public-private partnerships

• Investment opportunities across supply chain technology, manufacturing automation and supporting local innovation ecosystems in emerging hubs

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