Asia-Pacific private equity deals stalled last year as slowing growth, high rates and volatile markets spooked investors: Bain
- Total deal value and fundraising in Asia-Pacific dropped to the lowest in a decade at US$147 billion and US$100 billion, respectively: Bain & Company
- Slowing economic growth, high interest rates and volatile stock markets worried investors
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, according to Bain & Company.
Slowing economic growth, high interest rates and volatile stock markets worried investors, dragging transactions to a halt.
Total deal value and fundraising in Asia-Pacific dropped to the lowest in a decade at US$147 billion and US$100 billion, respectively, according to the global consultancy’s annual report released on Monday.
“2023 was a very turbulent year in the Asia-Pacific private equity market as it was in the European and North American markets as well,” Lachlan McMurdo, co-author of the report, said in an interview. Investors remained “especially cautious” about buying companies in mainland China, Hong Kong, and Taiwan, he noted separately in the report.
China’s deal value fell 58 per cent compared with the previous five-year average, reducing its share of total Asia-Pacific tally to 28 per cent, while the Japanese market grew 183 per cent over the same period and accounted for 30 per cent of the region’s deal value last year.
