At a media briefing for the Bain & Company 2025 Southeast Asia Private Equity Report, Suvir Varma, advisory partner at the firm's global private equity practice, said:"Deal-making was very good for SEA, but very good relatively speaking to the previous year. We have not yet gone back to the historic peaks that SEA saw on deal-making, but we should take the positive where we can get it."
Growth was most pronounced in Singapore and Indonesia, which continued to attract the bulk of capital. Singapore alone accounted for 48% of the region's deal count and 56% of the transaction value, driven by its strategic location, supportive policies, and strong digital infrastructure initiatives. Indonesia captured 17% of deal flow by count and 24% by value, supported by a young, digitally connected population and a renewed focus on economic liberalisation under the new administration.
Outside the two largest markets, Vietnam saw an uptick in energy and logistics investments, the Philippines maintained strong demand in business services and healthcare, while Thailand benefited from interest in digital economy plays and energy transition sectors. Overall, regional activity showed that investors increasingly viewed SEA as a vital diversification play amid shifting capital away from Greater China.
Sector rotation, fundraising momentum
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The technology, media, and telecommunications (TMT) sector continued to dominate SEA's PE landscape. According to Deloitte, TMT contributed 52% of the total deal value in 2024 as SEA cemented its status as a burgeoning hub for AI and data centres. Mega-deals in digital infrastructure were key drivers. Bain & Company cited examples such as KKR's US$1.3 billion investment in ST Telemedia Global Data Centres and Coatue Management's US$1.2 billion stake acquisition in DigitalLand Holdings.
Bain & Company's Tom Kidd, partner for Southeast Asia PE practice, observes: "There was about US$15 billion of PE investment value in SEA in 2024, up from US$9 billion in 2023, driven by a few very large transactions like ST Telemedia, DigitalLand Holdings, and others."
Digital infrastructure, renewable energy and fintech also emerged as particularly strong subsectors. Kidd says: "We are seeing this influx of infra, infra-like capital flowing into SEA to help support growth in deal value." Bain & Company also flagged the surge in investments in financial services, with fintech continuing to represent a high-growth, high-conviction sector. The firm highlighted that fintech deal activity in SEA grew faster than in the broader Apac region, driven by strong demand for digital financial services and underpenetrated banking markets.
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The consumer and education sectors also witnessed renewed interest. Deloitte noted that education was one of the fastest-growing areas, with nine deals announced in 2024 compared to just one the previous year. Rising disposable incomes, favourable demographics, and ongoing education reforms in emerging SEA markets underpinned this expansion. The healthcare sector, while seeing fewer transactions compared to 2023, remained attractive in value terms, with standout deals such as CVC's US$1.1 billion acquisition of Indonesia's Siloam International Hospitals.
The consumer sector also posted robust growth, particularly in the education sector. Deloitte reported nine education sector deals in 2024, compared to just one the previous year.
Bain & Company's Kidd adds: "Education is another one of those defensive sectors like healthcare that kind of doesn't matter in terms of macro-volatility. We are just continuing to see a lot of middle-class people putting incremental dollars into private education for their children."
In terms of fundraising, SEA emerged as a rare bright spot. Deloitte reported a 21% increase in capital raised to US$6.3 billion in 2024, defying the broader 32% drop across Asia-Pacific. The fundraising momentum was led by Singapore-based funds such as Exacta Asia Investment III, which closed at US$320 million, and Golden Gate Ventures Fund IV at US$120 million. Vietnam's ABB II and GenAI Fund also successfully raised capital.
This resilience in fundraising reflected investor confidence in SEA's structural growth story. Bain & Company observed that while pan-Apac funds gained a greater share of overall fundraising, regional and country-specific funds in SEA remained well-supported. Investors increasingly favoured smaller, sector-focused vehicles capable of tapping into digitalisation, consumer spending growth, and sustainability trends.
Despite these positive indicators, capital rotation remains selective. Varma says: "Fundraising is hard because when I go back to you - the capital provider or LP [limited partner] - and ask for more money, you're asking for returns [and DPI (distribution to paid-in capital)]."
The financing landscape is also evolving. Private credit continued its steady expansion in SEA, as evidenced by Temasek's establishment of a $10 billion private credit platform in December 2024. Regulatory tightening in traditional banking has created a funding gap for SMEs, which private credit providers are increasingly stepping in to fill.
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Exit challenges persist, but optimism builds for 2025
Despite the stronger deal flow, the exit environment remained one of the major headwinds facing general partners (GPs). Deloitte's analysis showed that, although the total exit value increased by 50% compared to 2023, the number of deals declined from 30 to 26. Trade sales remained the predominant exit route, as subdued IPO markets and valuation gaps between buyers and sellers continued to dampen alternative exit channels.
Kidd says: "Exit activity is still below where we were pre-Covid by a meaningful amount, and relative to the amount of capital deployment in the region, that's a number that should probably be quite a bit higher."
Bain & Company likewise flagged ongoing "exit overhang" risks. Portfolios aged beyond the typical five-year holding periods, and with fewer early exits completed, GPs faced growing pressure to deliver liquidity to limited partners. The median EV/Ebitda deal multiple in Apac rebounded from 10.3 times to 12.8 times, reflecting some recovery in valuations, but not enough to fully ease exit bottlenecks.
Varma says: "Exit is from the perspective of who gave you the money or your LP. A good exit is one that returned the highest amount of capital in the shortest amount of time." Kidd adds: "The best PE firms know at the point of acquisition who is likely to buy the company from them."
In response, GPs are increasingly adopting GP-led secondaries and continuation funds. Deloitte highlighted Navis Capital Partners' continued expansion in this space, with its second continuation vehicle supporting existing education assets. These alternative liquidity strategies are expected to become more prominent in 2025 as firms seek to manage aged assets and extend fund lives. "Continuation vehicles buy you time, but ultimately you are going to have to find true liquidity for your deals to raise another flagship fund," says Varma.
Looking ahead, there is cautious optimism that exits will improve. Administrative transitions in Vietnam, Indonesia, and Thailand in 2024 have introduced greater political stability, which could translate into better IPO conditions and more trade sale activity. Investor sentiment has also strengthened following expectations of lower interest rates, better credit availability, and stabilising global markets.
According to Schroders Capital, the "3D Reset" - a combination of demographic changes, decarbonisation and deglobalisation - will structurally favour small- to mid-market buyouts. Schroders' research found that small- to mid-cap PE funds have historically outperformed large-cap peers across multiple regions and economic cycles, due to better entry valuations and more flexible exit options.
Moreover, SEA's secular growth trends remain intact. Urbanisation, rising middle-class consumption, digital adoption, and sustainability demands are expected to drive continued investment across the TMT, education, healthcare, fintech, and renewable energy sectors. Bain & Company expects digital infrastructure and energy transition assets to remain key deal themes throughout 2025.
Singapore is poised to maintain its leadership position, anchored by its robust digital infrastructure ecosystem, strong legal framework, and proactive regulatory environment. Indonesia, while still navigating governance risks, is expected to benefit from ongoing economic reforms aimed at streamlining investment approvals and enhancing M&A activity.
Vietnam, the Philippines, and Thailand are also emerging as second-tier PE markets, driven by sector-specific opportunities in education, logistics, healthcare, and energy. Meanwhile, greater cross-border integration among Asean economies could further unlock regional growth potential for PE investors.
While liquidity pressures will persist in the short term, the combination of solid macroeconomic fundamentals, favourable demographic dynamics, and the increasing sophistication of SEA's PE ecosystem provides grounds for long-term optimism. Firms that are nimble, sector-focused, and operationally hands-on are likely to be best placed to navigate the evolving environment.
Ultimately, SEA's private equity industry in 2025 is shaping up to be a market of opportunity, albeit one requiring more patience, creativity and execution discipline than previously. "At least before the recent tariff turbulence, there was a sense of growing optimism in the sector," says Kidd, adding that the private deal markets do not like uncertainty. While core business fundamentals remain attractive, the geopolitical climate could delay exits and fundraising in the immediate term.
Varma adds: "It's never as bad as one thinks it is when it's down, and it's never as good as one thinks it is when it's at the peak."
Southeast Asia PE buyout investments (2015-2024)
Source: Deloitte Analysis
Southeast Asia PE buyout exits (2015-2024)
Source: Deloitte Analysis
