KPMG Asia Pacific Private Equity Barometer 2023

Whilst the pace of Private Equity activity in the region may have slowed, confidence remains strong. As the markets recalibrate and capital under management rises, 2024 promises to be a blend of prudence and ambition.

KPMG Asia Pacific’s Private Equity Barometer 2023 report uncovers investment trends and opportunities in relation to:

• Private equity activity in Asia Pacific down but definitely not out as the market recalibrates and green shoots appear
• History has shown these are often the best times to invest
• South and Southeast Asia emerge as new epicenters of investment interest in the Asia Pacific region
• China has slowed down but the sheer size of its market can’t be discounted
• Intense interest in Healthcare and AI
  

According to the report, total investment value across the region plunged by 36 percent to US$84.7bn in the first half of 2023. That is compared to US$132.3bn in 1H2022, which itself was a major drop from the five-year high of US$243.9bn recorded in 2H2021.

“News of the death of private equity has been greatly exaggerated. While we have seen private equity investment dip to some of its lowest levels since the onset of the pandemic, the market remains robust and we’re already seeing a strong deal pipeline start to take shape across Asia Pacific. While uncertainties remain, there are early indicators of a resurgence in 2024”, says Andrew Thompson, Head of Private Equity, KPMG Asia Pacific.

The outlook for 2024 promises to be a blend of prudence and ambition – and while the sheer volume of deals might harken back to quieter times, the number of opportunities across Asia Pacific only seems to be expanding. Overall, market conditions are likely to remain challenging for the foreseeable future, but well capitalized fund managers will be ideally positioned to see out this period of dislocation, invest in good assets at attractive valuations and emerge from the current downturn stronger than ever.