Private equity deals worth $7.8 billion were recorded in 2016, with the technology sector contributing the most to overall deal value, EY said in its latest Private Equity Briefing: South-East Asia report.
While deal volume was lower at 123 deals compared with 162 deals in 2015, the overall value of private equity deals completed in 2016 saw an increase of 41 percent from the previous year.
According to EY, the jump in deal value was because of large transactions in Indonesia’s technology sector, of which $1.3 billion was raised by two ride-hailing apps in the third quarter of 2016.
KKR, Warburg Pincus, Farallon Capital and Capital Group Private Markets participated in more than $550 million funding round for Jakarta-based motorbike hailing company GO-JEK in July last year. Meanwhile SoftBank Group was one of the backers of the $750 million Series F financing of Grab in September.
The ride hailing market is set to increase further as companies expand into food delivery and logistics, the report said.
Among the region’s biggest deals last year include CVC Capital Partners’ $1.1 billion purchase of Malaysian funeral services provider Nirvana as well as its $165 million acquisition of Indonesian hospital group Siloam International Hospitals and Baring Private Equity Asia’s $137 million acquisition of Manila-based business process outsourcing company Telus International.
Deal activity trends have already set the tone for 2017. Data from Mergermarket show that from January to April, 313 transactions or 23 percent of private equity deals in the region were in the technology sector. There were, however, more technology deals completed in China and India.