News

Southeast Asia’s private equity and venture capital at record high

Private_equitySoutheast Asia has seen record levels of private equity and venture capital investment activity in 2018, according to the accounting and professional services firm, Ernst & Young (EY). In the second quarter of this year 36 private equity deals were closed, with investments totalling $1.3 billion (€1.4 billion). This represents a considerable rise from the same time last year where aggregate investments stood at $709 million, as investors continue to bet on higher economic growth, further investment in technology and a growing middle class, EY said. Singapore led the pack and generated the most interest from private equity and venture capital investors, which accounted for 56% of deals in 2Q 2018. Malaysia trailed with 26% while Indonesia contributed 14%.  Most of the investments were directed towards the consumer products and retail (30%) and technology (25%) sectors and the latter “will remain a high priority sector in the region,” the report said. Private equity exits saw a sharp drop in 2Q 2018 with four deals valued at $443 million – a 28% drop from a year ago. As a number of private equity assets near the end of their investment life, EY is forecasting healthy exit activity over the next year. “We expect the momentum in deal activity to continue for the rest of the year,” the firm said  “Private equity fundraising remained robust despite being lower than the record levels in previous years. There were six Asia-Pacific domiciled private equity and venture capital funds with a focus on Southeast Asia that reached their final close, raising an aggregate $942 million compared with 11 funds closed in 2Q 2017 raising an aggregate $1.4 billion.” ©2018 funds global asia

Executive Interviews

INTERVIEW: Operational challenges

Jun 09, 2018

Caroline Higgins of Northern Trust tells George Mitton about A-share inclusion, ETF Connect and why Cayman funds predominate in the region.

INTERVIEW: Making a name

Apr 18, 2018

Formed by a merger in 2012, Old Mutual Global Investors was little-known in Asia. Carol Wong, managing director for Asia-Pacific, is changing that. She talks to George Mitton.

Roundtables

SINGAPORE ROUNDTABLE: Optimism versus caution

Oct 23, 2018

The impact of financial technology, developments in Asian passporting and the promise of new markets in Thailand were among the topics discussed by our panel. Chaired by George Mitton in Singapore.

HONG KONG ROUNDTABLE: a long-term project

Jun 09, 2018

Our panel discussed robo-advisers, ETF Connect, and why the mutual recognition of funds (MRF) scheme will take time to develop. Chaired by George Mitton in Hong Kong.