The Southeast Asian region’s dealmaking landscape this year has been characterised by the mega, private fundraising rounds of tech unicorns.
A record 166 deals were struck in the PE and VC space in Singapore – up from 154 deals done last year and a dramatic increase from the 47 investments just five years ago.
The technology sector accounted for nearly half of the $6.5-billion worth of private equity and venture capital deals struck in the city-state, according to global consultancy Duff & Phelps.
In fact, Duff & Phelps managing director Srividya Gopal reckons there are three to four emerging unicorns that could rise to the ranks of the existing ten in Southeast Asia in the coming year.
In the public markets, initial public offerings in Singapore raised $2.3 billion – four times as much as the year before, buoyed by the mega listings of real estate investment trusts. Yet, the performance at neighbouring exchanges continues to be lacklustre. Indeed, continuing structural shifts in this region are favouring private capital.
“The most dramatic change we have seen in the regional transaction landscape in the last 5 years is the region’s ability to attract significant PE/VC investments. There have been several new funds that have successfully raised capital with a dedicated Southeast Asia focus and several global funds that have increased allocation for the region,” said Gopal in an interview with DealStreetAsia.