Asia PE deals lowest since 2005

The value of Asia deals dropped 46% last year.

Private equity investment in Asia continued a three-year slide by falling 46 percent to $11.4 billion, the lowest total since 2005, according to a report by Thomson Reuters.

The data represents completed, announced deals and excludes Japan. 

The regional total was the lowest since 2005, when $8.8 billion in private equity deals were completed, the report said.

Last year, China continued to be the region’s dominant market, representing about 40 percent of all investments. 

The PRC attracted $4.5 billion, a 47 percent decline from 2012. India had the second largest total ($3 billion), down 37 percent from the previous year.

Three markets represented about 80% of Asia deals  

   Value US$bn   Volume 
China    $4.5    294 
India    $3    346
Korea    $1.3   41

Source: Thomson Reuters

Investments in some Southeast Asian markets, however, were higher. Singapore, Malaysia and the Philippines recorded increases in private equity deal value and volume. Among those markets, the Philippines attracted $176 million across six deals compared to just $2.3 million across three deals in 2012. 

However, the most attractive sub-regional market, Indonesia, fell 79 percent to $30 million. 

The sector receiving the largest amount ($3.1 billion) was industrial/energy, followed by internet-related companies ($2.7 billion), though the latter total represented a 54 percent drop year-on-year.

Private equity exits through IPOs across Asia showed a 37 percent annual drop to $7.9 billion across 46 deals, according to the data. The drop was linked to China’s domestic markets, which were closed to new listings all year. Trade sale exits, however, doubled in value to $6.54 billion, with China accounting for the largest share at $3.9 billion.