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Laxman Pai, Opalesque Asia: The total private equity (PE) deal value for the Asia-Pacific region plunged by 44% from $354 billion in 2021 to $198 billion in 2022, as investors' appetite for risk fell in the face of inflation and geopolitical tensions, according to a study.
That's compared to $354 billion in 2021, the Bain & Company analysts said adding that nearly 70% of surveyed fund managers expect the negative trend to continue into 2024.
Lingering macroeconomic uncertainties alongside rising costs and worsening company performance dampened investor sentiment, Bain said in its Asia Pacific Private Equity Report 2023.
Across the region, deal value declined between 25% and 53%. Greater China and Southeast Asia saw the greatest fall at 53% and 52%, respectively, with the former challenged by uncertainties relating to the zero-Covid policy, geopolitical tensions, and tech regulatory crackdowns, and the latter faced with fewer growth deals.
Deal value in Australia-New Zealand (ANZ), Korea, and Japan dropped 48%, 39%, and 28%, respectively. Deal value in India declined 25%.
Greater China continues to hold the lion's share of the region's total deal value although it plummeted to 31%, a 9-year low. India and ANZ increased their shares to 23% and 19%, respectively.
When it comes to deal type, growth deals continued to outpace buyouts in 2022, producing 54% of deal value, up from 50% in 2021. However, the total value of large growth deals above ...................... To view our full article Click here
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