Private equity exits in Southeast Asia last year lowest since 2006

Exit value by private equity funds in Southeast Asia last year slid to US$4.4 billion - the lowest level since 2006, a report by Bain & Company showed on Friday.

While exit count rose slightly to 30 from 26, half of that was valued at less than US$50 million, the consultancy said.

"We have to see the IPO market in Southeast Asia open up," said Suvir Varma, head of Bain's private equity practice in Asia Pacific, at a conference.

He added that funds also have to renew their push for performance, especially as their holding period has extended to a new high of nearly five years.

This is a competitive space, with Bain estimating there are about 120 funds in this region, actively looking for deals. "That's a lot, given the six billion dollar market that we had last year," said Mr Varma.

Investment value stood at US$5.9 billion in Southeast Asia at the end of last year, slightly higher than the previous year, but 7 per cent below the five-year average.