SE Asia’s PE fundraising battered by the pandemic in H1, but outlook brightens

Jakarta, Indonesia. Photo by Tom Fisk on Pexels.

Fundraising momentum slowed down for Southeast Asia-focused private equity funds in the first half of this year, putting an end to steady growth witnessed in the previous three semesters, DealStreetAsia’s latest research and analytics report shows.

Activities in the private capital space, however, are picking up as markets reopen and a V-shape recovery is expected for major economies in the region, according to Private Equity in SE Asia: H1 2020 Review.

In the first six months of the year, only one Southeast Asia-focused fund managed to reach a final close, against three in each of the three preceding semesters. At $595 million, however, Quadria Capital’s second fund is the largest raised by a regional PE firm since the beginning of 2018.

Interim close indicators also show encouraging milestones. Five firms reported interim closes in the first half, higher than three in the previous semester and two in the same period last year. Overall, PE funds still managed to record new fundraising milestones despite the unprecedented challenges brought about by the COVID-19 pandemic.

For this report, we also collected data on Asia-Pacific funds targeting one or more Southeast Asian countries – Singapore, Indonesia, Vietnam, Cambodia, Thailand, Malaysia, Myanmar and the Philippines – among its core markets. The trajectory appears to be positive for such funds in terms of both final closes and new capital raised in the first half of 2020 relative to both semesters of 2019. Ten new APAC funds launched this year and two SEA-focused funds in the first half.

As social and business activities resume across the region, fundraising activities should regain some momentum in the remainder of the year. Everstone Capital co-founder and CIO Atul Kapur believes that businesses have figured out how to navigate the current crisis a lot better than they did seven months ago.

The landscape will also see some GP consolidation in emerging markets, according to Nainesh Jaisingh of Affirma Capital. The ability to pivot investment styles will play a key part in determining winners, he added during a recent conversation with our team.

Access Private Equity in SE Asia: H1 2020 Review to learn more. This report is available exclusively to DealStreetAsia Research & Analytics subscribers.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.