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Laxman Pai, Opalesque Asia:

Total deal value and fundraising in Asia-Pacific private equity (PE) markets dropped to the lowest in a decade at US$147 billion and US$100 billion, respectively according to a study.

The report by Bain & Company revealed that consistent with the industry globally, the region's deal value slid 35% from the previous five-year average to the lowest annual level since 2014. The volume of deals was 30% lower than the 2018-2022 average.

Economic uncertainty affected most markets including Australia-New Zealand, China, Southeast Asia, and India, where deal value fell 63%, 58%, 47%, and 41% respectively vs. the previous five years. All four markets reported fewer mega deals (over $1 billion) than in prior years. South Korea fared slightly better as deal value fell by 20% compared with the prior five-year average, increasing its share of the region's deal value.

Incidentally, Japan overtook China as the biggest private equity market in Asia-Pacific last year, becoming the only country to see an increase in deal activity as the rest of the region remained shrouded in uncertainty.

"Japan was the only market to buck the trend, where deal value rose 183% over the prior five-year average, making it the region's leading deal market for the first time. Mega deals were the largest factor behind Japan's surge in deal value, helping boost deal value to 30% of the Asia Pacific total, up from 7% over the previous five-year average," the ......................

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