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Laxman Pai, Opalesque Asia: Private equity (PE) dealmaking in 2022 hit its lowest level in five years in Asia-Pacific (APAC), following six consecutive quarters of progressive decline, said a study.
According to a recent research report by S&P Global, the region, excluding Japan, saw just 42 transactions totaling $5.39 billion in the fourth quarter of 2022 - in contrast to 79 deals worth $20.07 billion in the same period of 2021, and $25.42 billion across 91 deals in Q3 2021.
"Deal value and deal volume have been slowing since the third quarter of 2021, the period that saw the highest private equity investments in the region in the last two years," the researchers noted.
In total, 2022 saw 208 PE transactions with a total value of $35.43 billion, the research found, it said. Activity peaked in 2021 when private equity transacted 347 deals valued at $74.08 billion.
The 2022 slowdown in Asia-Pacific deals is linked to a sharp decline in investment driven by a pullback of U.S. institutional investors in China, Cate Ambrose, CEO of the Global Private Capital Association, said in an interview with Market Intelligence. Investment capital is being primarily reallocated to India.
Investors see technology companies in India and Southeast Asia, in particular, as quality investments more favorably valued compared to counterparts in the U.S. or China, Ambrose said.
Overall M&A activity in Asia-Pacific recorded a total value of $203.98 billion in the fourt...................... To view our full article Click here
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