Few exits, limited investor appetite to test South-east Asia’s PE managers

PRIVATE equity (PE) funds operating in South-east Asia will need a strong domestic presence to pull off roll-ups and trade sales in the face of mounting challenges, including difficulties exiting investments and raising funds.

Investors are showing a preference for larger funds and managers with a pan-Asia focus, but various industry players The Business Times spoke with said any fund that hopes to succeed in South-east Asia will require a focused approach to sourcing for deals – whether for buy-and-build strategies, or for exits.

“South-east Asia is a very fragmented market,” said Angela Lai, vice-president and head of Asia-Pacific and valuations at data provider Preqin.