Private equity deal value in Southeast Asia rose in Q3 2025 due to large-ticket transactions

• US$2.5b was deployed across 13 PE-backed deals in Q3 2025, with transactions centered on technology, business services, health care and real estate
• PE-backed exits were valued at US$539m across six deals 

SINGAPORE, 30 OCTOBER 2025. Private equity (PE) activity in Southeast Asia (SEA) gained momentum in Q3 2025, with deal value more than double from US$1b in the previous quarter to US$2.5b. This was primarily driven by two large-ticket transactions that were valued above US$400m, contributing approximately 71% of total deal value. The region recorded 13 PE-backed investments, down from 22 deals in Q2 2025. 

Among the deals where values were disclosed, the average deal size witnessed a 19% year-on-year decline.

This is according to the EY Southeast Asia Private Equity Pulse (Q3 2025), which provides a roundup of PE deals along with capital activities across major sectors in the region, from July to September 2025.

In Q3 2025, the technology (specifically digital infrastructure) sector accounted for 53% of these investments, followed by business services (17%), health care (10%) and real estate (10%). Among the SEA markets, Singapore witnessed the most activity in the quarter, generating over 85% of the region’s PE deal volume.

For exits, SEA recorded six deals generating US$539m in realized proceeds. Distributions to paid-in capital (DPI) remain a key performance focus for limited partners (LPs) but continue to be challenging in the region, reflecting slower exits and muted liquidity. The PE-backed IPO market saw no activity.

Fundraising remains weak as it is highly correlated to DPI. This is expected to strengthen over the coming period.

Shifting LP priorities and easing rates drive regional PE activity

In addition to buyouts, there is greater interest in private credit opportunities targeting mid-market, high-growth companies that remain underserved by traditional banks. There is also significant capital allocation to infrastructure, particularly digital Infrastructure and renewable energy, as well as real estate.

LPs are prioritizing allocations to larger, experienced local general partners (GPs) who bring strong on-the-ground insights and execution capabilities but also offer a diversified multi-market and multi-product portfolio.

With rate cuts on the horizon, lower financing costs are likely to spur deal activity across SEA. This should translate into more large buyout transactions and PE exits, even as geopolitical uncertainty continues to pose challenges. The region is poised for accelerated mergers and acquisitions (M&As), exit and fundraising activity over the next few quarters.

Luke Pais, EY-Parthenon Asean Private Equity Leader, says: 
“While the first half of the year was slow, we see deal momentum consistently building. There is still a lot of macro uncertainty. However, strong gross domestic product (GDP) growth across most Southeast Asia markets, anticipated near-term rate cuts, a good pipeline of Asia-focused interim fund closures in 2025 and rising interest from international investors collectively position the region for stronger investment and exit activity in the coming quarters.”

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