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Singapore most active in private equity, venture capital activity in region in Q2: EY report

PRIVATE equity (PE) and venture capital (VC) activity in South-east Asia during the second quarter of 2018 remained robust, with about US$1.3 billion worth of investments pumped into 36 deals.

Singapore contributed to more than half of the aggregated deal value, according to an EY report released on Tuesday. The country witnessed 20 deals in Q2 2018 with a total value of US$739 million.

The top deal came from the US$312.0 million privatisation of crane supplier Tat Hong Holdings by Standard Chartered Private Equity and the family of chief executive Roland Ng.

Second on the list was the US$85 million close of Carousell’s Series C round led by Rakuten Ventures and EDBI, the corporate investment arm of Singapore’s Economic Development Board.

PE and VC deals in Malaysia accounted for 26 per cent of total deal value, followed by Indonesia contributing 14 per cent. In particular, Indonesia’s PE and VC investments jumped 86 per cent from a year ago, rising to US$186 million.

Top deals in both countries include CVC Capital Partners’ investments in snack food manufacturer Munchy’s Group in Malaysia for US$250 million, and snack maker PT Garudafood Putra Putri Jaya in Indonesia for US$150 million.

EY said that overall, excluding large-cap deals, the aggregate investment in small and mid-cap deals in Q2 2018 leapt 87 per cent year on year as investors continue to bet on higher economic growth, rising investment in technology and a growing middle class.

Key sectors drawing investment were consumer products and retail, as well as technology.

Four PE exits were recorded during the quarter, with a value of US$443 million, excluding an undisclosed amount from a deal between Navegar and Fullerton Health for a stake in Intellicare Group.

The report noted that there remains limited disclosure around exits in the region, with a number of deals going unreported and therefore not captured by the analysis. With the growing number of PE assets coming to the end of their investment life, EY expects exit activity to remain healthy over the next 12 months.   

Meanwhile, fundraising in the second quarter saw a decline. Six Asia-Pacific domiciled PE and VC funds with a focus on South-east Asia reached their final close, raising about US$942m. In contrast, 11 funds closed in Q2 2017 raised about US$1.4 billion.


But VC fundraising in the first half of 2018 saw an upswing of over 70 per cent to US$701 million, lifted by three funds that raised more than US$100 million each.

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