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Laxman Pai, Opalesque Asia: The ASEAN-focused private equity and venture capital (PEVC) industry reached a peak of $37bn as of December 2020, having more than doubled over the previous five years ($17bn), said Preqin in its report 'Alternative Assets in Asia-Pacific'.
"Southeast Asia's private equity and venture capital industry is past a tipping point for maturity and growth, with a more dynamic future for deals ahead," it said. The report found that the region is attracting significant amounts of PEVC investments.
The upward trend can be traced to the amount of capital secured by ASEAN-focused PEVC funds, picking up rapidly since 2017 and reaching a peak of $9.6bn in 2019, it said.
Furthermore, these same ASEAN-focused funds secured a total of $33bn in commitments since 2010, as of April 2021. Highlighting the strong performance of the region, the median net internal rate of return (IRR) for 2009-2018 fund vintages, with a focus on ASEAN, stood at a robust 22%, compared to 14% for the rest of Asia.
As Southeast Asia has radically developed into a vibrant technology hub, the sectors that came out top include technology and innovation, owing to the improvements in internet connectivity and affordability, and proving a boost to e-commerce and digital payments.
Against this backdrop, ASEAN-based venture capital industry assets under management reached a record-breaking $16bn, a sum 2.6x the total in 2015. On the deals front, the total value of venture...................... To view our full article Click here
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