Private equity investments in SE Asia surge as ESG investing goes mainstream

POWERED by strong economic growth, private equity investments in Southeast Asia rose to a record US$25 billion in 2021, up 143 per cent over 2020. Singapore’s deal value nearly doubled to US$12.1 billion.

The surge in dealmaking followed a sharp decline in 2020 amid Covid-19 lockdowns and restrictions. Each country in Southeast Asia set new investment highs last year, and five megadeals accounted for 33 per cent of total deal value.

Internet and tech investments made up the largest share of Southeast Asia deal value and volume in 2021. Overall, investments in early-stage companies increased fivefold in 2021 and those in growth companies rose 143 per cent. Exit value in Southeast Asia rebounded to US$8 billion, with Singapore making up most of the increase. A sharp rise in initial public offerings (IPOs) across the region included Singapore’s Grab Holdings (US$4.3 billion) and Straive (US$1 billion).