SE Asia private equity deals drop in H2 2022 - Bain & Co

According to a Bain & Company report, private equity (PE) deal flow in Southeast Asia saw a slowdown in 2022, with a significant drop in the second half of the year. PE investment deals dropped from 207 in 2021 to 176 in 2022, with deal value falling from USD27bn to USD13bn. Usman Akhtar, head of Bain's Southeast Asia private equity practice, cited increasing interest rates, a softening economic environment, and general uncertainty over the future as reasons for the natural reaction to the global macro climate. Despite this, the regional energy transition is attracting more investor interest. Top-line growth, cost improvement, and capital efficiency are expected to drive returns, with multiple expansion being less of a key driver.