Private dealmaking in the Asia-Pacific (APAC) region has grown over the past few decades, even as investors grew cautious in 2022, when fundraising softened in response to geopolitical tensions, inflation and slow economic growth. However, opportunities remain. Our new report examines these market trends and the future outlook for APAC private equity (PE) and merger and acquisition (M&A) markets.
In recent years, M&A dealmaking in the APAC region has been driven by the B2B sector, while technology in the IT and B2C sectors has been the main drivers in the PE market. With a diverse array of political and economic systems across the region—from global powerhouses to emerging markets—the countries and sectors driving dealmaking trends have shifted somewhat year-to-year. For instance, India has experienced spikes in M&A activity, while Australia has driven the greatest share of total M&A deal value for three years running.
From cross-border deals reaching a low in 2020 to continued market volatility creating roadblocks for first-time fundraising activity, there have been many challenges over the past few years. Despite those challenges, there are signs of resilience. Cross-border M&A deal activity has remained steady after rebounding in 2021, and the relaxing of China’s “zero-COVID” policies is expected to increase investment activity across the region. The trends also show continued growth in smaller markets like Vietnam, Indonesia and the Philippines—growing economies can bolster long-term returns for investors.
To learn more about the M&A and PE dealmaking trends across the APAC region, download the full report.