Increase in private equity and venture capital transactions in Asean

THE ever faster pace of technology adoption has led to an increase in private equity and venture capital (PVEC) deals, particularly to fund startups.

Assets under management reached US$57 billion (RM253 billion) in September 2021, up from just US$17 billion (RM57.75 billion) a decade ago.

The best opportunities this year in the PEVC are in Asean and it is the highest among all emerging markets.

The digitization of existing businesses over the past few years has generated strong investor interest. There is a strong surge in seed investment by investors in the region, says the report “Preqin Territory Guide Asean: 2022”.

Last year, venture capital deal activity reached US$20 billion (RM80.12 billion) in ASEAN and the trend continues.

Overall deal value for Asean in 2021 was 35% higher than 2019 and 2020 levels combined, and 85% higher than the last peak of US$11 billion (RM49.02 billion) in 2018, says The report.

Singapore and Indonesia accounted for the most venture capital deals last year, accounting for 46% and 37% of total deal value in Asean, respectively.

Countries like the Philippines and Vietnam posted the fastest growth, both up 6.9 times in 2021 from their past five-year averages, it adds.

Information technology as a sector continued to dominate venture capital deals done in ASEAN, totaling 379 deals with an aggregate value of US$6.7 billion (RM29.86 billion) in 2021.

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