Figures from S&P Global Market Intelligence point to a huge fall in private equity and venture capital investments in the Asia-Pacific region so far in 2023 compared to the previous year.
Up to 27 July, the value of private equity deals was reported as just $52.6m against $10.93bn in the same period in 2022, while the number of deals reported fell to just 11 from 15 over the comparable period.
S&P Global Market Intelligence notes that the figures are skewed particularly because of a couple of very large deals announced in early 2022. One was EQT AB aquiring fellow private equity firm Baring Private Equity Asia, now BPEA EQT, for $7.45bn, the other was KKR & Co. Inc.'s purchase of real estate asset manager Mitsubishi Corp.- UBS Realty Inc. for $1.94bn.
2023 second quarter transaction value was $46.4m, down from $655.5m a year ago.
In comparison, the biggest transaction in 2023 so far was Proparco SA's $35m equity investment in Quadria Capital Investment Management Pte Ltd., a healthcare-focused private equity firm.
Hangzhou Taige Equity Investment Partnership Enterprise's announced acquisition of a 19% stake in Hangzhou, China-based Hangzhou Kechang Technology Consulting Co. Ltd. was valued at $6.2m. More recently, Ares Management Corp. agreed to buy private equity firm Crescent Point Capital. The Singapore-based firm had about $3.8 billion of assets under management as of 31 March, S&P Global Market Intelligence notes.
By location in 2023, Singapore secured the largest amount of investment with $35m, on the back of the Quadria deal. China and Australia came next with $6.2m and $5.9m, respectively.
Source: S&P Global Market Intelligence
