The Preqin Territory Guide breaks down each alternatives asset class in the region, as well as delving into the roadblocks private markets face in the region.
The report shows that venture capital deal activity in ASEAN soared in 2021, reaching a record $20bn — which is twice as much as the rest of Asia, which witnessed a 0.8x growth in aggregate deal value over the same period.
The Association of Southeast Asian Nations (ASEAN) private equity and venture capital industry entered a new phase of growth in 2021 and is attempting to sustain the momentum despite headwinds.
While macro tailwinds supporting long-term growth in the region over the past few years remain intact, particularly given its rapidly emerging middle class and increasing digital adoption, macro headwinds like geopolitical tensions, rising oil prices, inflation, and interest rates have prompted investors to be more selective in identifying companies that can tap on the region’s growth while maintaining strong balance sheets.
Key ASEAN Territory Guide 2022 facts:
- Venture capital deal activity in ASEAN soared in 2021, reaching a record $20bn
- The aggregate deal value for ASEAN in 2021 was 35% higher than the 2019 and 2020 levels combined, and 85% higher than the last peak of $11bn in 2018. Most of the deals in 2021 were in Singapore and Indonesia, which accounted for 46% and 37% of the aggregate deal value in ASEAN respectively
- Information technology, as a sector, continues to dominate the venture capital deals made in ASEAN. There were 379 deals made with an aggregate deal value of $6.7bn in this sector in 2021
“ASEAN has captured the attention of global investors that are actively seeking new growth markets and has proven to be one of the more promising markets for private equity and venture capital.
“The burgeoning tech industry offers a lot of potential for investors who have the expertise and local knowledge to identify young hidden gems. As the region continues to grow and offer more sustainable exit opportunities, investing in the region will truly take off,” says Harsha Narayan, Senior Writer at Preqin.