Strong private equity (PE) deal performance across Southeast Asia in 2024

• US$15.8b was deployed across 67 PE-backed deals in 2024, representing the largest number of deals since 2018 and the highest value since 2021

• Infrastructure was the most active sector, accounting for 40% of total PE deal value, followed by the real estate (20%) and consumer (13%) sectors

• Value and volume of PE-backed exits across the region almost doubled – from US$3.3b in 13 deals in 2023 to US$5.9b in 27 deals in 2024

Southeast Asia recorded a strong private equity (PE) deal performance in 2024. With a total of 67 PE-backed deals deploying US$15.8b, the region recorded a 221% year-on-year (yoy) increase in deal value, and 103% yoy increase in deal volume. The strong performance was driven by eight large-ticket investments (i.e., those valued at US$1b or more), contributing approximately 67% of total deal value during the year. 

This is according to the EY Southeast Asia Private Equity Pulse: 2024 in review, which provides a quarterly roundup of the PE deals along with capital activities across major sectors in Southeast Asia.

Infrastructure was the most active sector, contributing 40% to Southeast Asia’s total PE deal value in 2024. This was driven by the continued active investment by PE players in building out digital infrastructure capabilities across the region to meet market demand. This was followed by the real estate and consumer sectors, which constituted 20% and 13% of the region’s total PE deal value respectively. 

Across the markets in the region, Singapore accounted for the majority (45%) of deal value and volume. Malaysia, Indonesia and the Philippines collectively contributed about 55% of total PE deal value and some 43% of PE deal volume in 2024.

Luke Pais, EY Asia-Pacific Private Equity Leader says:  
“Deal activity notably picked up through the course of 2024, compared with the previous year, and we expect this momentum to carry into 2025. Amid the global geopolitical uncertainties that look to impact supply chains, Southeast Asia looks to benefit as a compelling destination for investors.” 

Early signs of exit activity recovery

Exits have been challenging globally over the past two years. However, Southeast Asia saw US$5.9b in PE-backed exits across 27 deals in 2024, compared with US$3.3b in 13 deals in 2023. Strategic investors have historically been the preferred mode of exit. However, the heightened caution of these investors in their acquisition strategy has led to an increased number of secondary transactions, i.e., sale of an asset by a PE firm to another PE firm.  

Pais says: 
“As a region comprising mostly developing markets, the lion’s share of investments in Southeast Asia are in growth-stage companies and minority stakes. This makes both exits and distributed paid-in capital generation more challenging. However, as interest rates decline and strategic buyers come back to the market, we expect exit activity to gain momentum in 2025. As well, as IPO markets recover, we have seen more dual-track processes with IPOs and other secondary transactions as an exit option.” 

For fundraising, there were eight PE fund closes raising a cumulative of US$6.3b, an 18% increase yoy across Southeast Asia in 2024. 

The report also highlighted the key trends to watch in the coming year. These include:

• Increase in deal activity: There is a lot of momentum in the deal market, and it is expected that 2025 will see more broad-based deal activity than 2024. 

• Private credit: While India and Australia have been the focus of private credit general partners (GPs), Southeast Asia is emerging as a promising market with nascent leverage buyouts and high-yield markets, highlighting the need for private debt solutions.

• Infrastructure: PE players in the region will continue to invest in infrastructure with a focus on renewable energy and digital infrastructure. The strong growth of artificial intelligence (AI) and other advanced technologies will require equally significant investment in data centers, and PE investment will be core to navigating this growth.

• Exits: As strategic buyers return to the market, interest rates gradually decline and IPO markets improve, robust exit activity can be expected.

• Portfolio performance: PE firms will continue to add operating capability to drive value in their portfolio. GPs will increasingly seek more control and greater say in how businesses are managed. 

• Digital disruption and AI: GPs will increasingly harness the power of AI in many aspects, from identifying investment trends to driving fund and portfolio performance.

• GP consolidation: Further M&A activity among the GPs can be expected as international firms look to fill gaps in their regional investment strategy.

• Alternate sources of fundraising: GPs are expected to increasingly focus on private wealth as a source of capital. 

Pais concludes:  
“In 2025, Southeast Asia is projected to achieve a GDP growth rate of 4.8%. Supported by a conducive interest rate environment, robust appeal across key sectors and initiatives aimed at improving exit 

performance, the outlook for private capital investment in the region remains positive. That said, global geopolitics is a headwind that can impact growth trajectories.”

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