Southeast Asia’s private equity activity was up 4.5 times y-o-y in 1Q2026, with deal value surging to US$9.2 billion ($11.7 billion) from US$2 billion in 1Q2025, says global strategy firm EY-Parthenon in their quarterly EY-Parthenon Southeast Asia Private Equity Pulse report.
According to EY’s report, the region saw a total of 19 private equity-backed investments in this recent quarter, a 36% increase in deal volume from the 14 deals that happened in 1Q2025. The total deal value of US$9.2 billion is the highest quarter ever recorded over the last five years, the firm adds.
“SEA seems firmly back in deal-making mode,” says Luke Pais, EY-Parthenon’s Asean private equity leader. “Despite macroeconomic headwinds, investment momentum is strong, with capital flowing across sectors. Crucially, exits are gaining traction, restoring confidence and liquidity to the system.”
Southeast Asia accounted for approximately 17% of total private equity deal value in the Asia Pacific, compared to just 4% in 1Q2025. Singapore continues to be the primary hub for private equity activity in Southeast Asia, accounting for 94% of the region’s total deal value and 68% of deal volume in 1Q2026.
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Notably, three megadeals, each valued at above US$1 billion, accounted for 91% of total capital deployed in the quarter. According to EY’s data, the most active sectors that were driving deals include: infrastructure (77%), consumer (14%) and technology (7%). EY says the outsized contribution from the infrastructure sector stemmed from two megadeals made for data centres.
* Includes industrials and media.
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In terms of exits, Southeast Asia recorded a total of six exits for 1Q2026. The exits generated a total of US$1.7 billion in realised proceeds. Aggregate exit value was up by 75% y-o-y though exit volume remains unchanged.
Geopolitical uncertainty a drag on sentiment
Fundraising activity in the region remains muted for 1Q2026, EY says, adding that it is a reflection of limited partners adopting a more measured approach amid the heightened geopolitical uncertainty arising from tensions in the Middle East.
According to the EY Global Private Equity Pulse Survey for 1Q2026, 56% of general partners view geopolitical and macroeconomic volatility as the biggest risk to their portfolio performance over the next 12 to 24 months. This was followed by a prolonged slowdown in exit activity, at 48%, and persistent high interest rates and financing costs, at 32%.
“The current economic environment underscores the importance of disciplined capital deployment and active value creation,” says Pais.
Sponsors who are able to manage cost pressures and develop operational resilience would be best positioned to generate returns as market conditions begin to normalise, Pais adds.
