Asia-Pacific private equity shows green shoots of recovery

Whats Happening:

Asia-Pacific's private equity market is showing signs of recovery after two years of decline. Deal value rose 11% to $176 billion in 2024, despite uncertain macroeconomic conditions. While deal count declined 9%, average deal size increased 22% to $133 million. Buyouts continued to be favored, accounting for over half of 2024's total deal value.

Key Moves:

• Asia-Pacific PE deal value rose 11% to $176 billion in 2024

• Average deal size increased 22% to $133 million

• Buyouts accounted for over half of 2024's total deal value

By The Numbers:

• Deal value rose 11% to $176 billion in 2024

• Average deal size increased 22% to $133 million

• Number of megadeals increased by 50% compared to 2023

Key Quotes:

• "Investors are still wary of market uncertainty and so we continue to see them favoring buyouts as a way for greater control to manage risks and ensure a clear path to increase value." - Sebastien Lamy, co-head of Bain & Company's Asia-Pacific PE practice

• "Green shoots are appearing in Asia-Pacific's PE market and despite ongoing challenges and a still uncertain macro environment, fund managers are more optimistic about 2025." - Prabhav Addepalli, Bain & Company PE partner

Bottom Line:

Despite ongoing challenges and uncertain macroeconomic conditions, Asia-Pacific's private equity market is showing signs of recovery. With increased deal values, larger average deal sizes, and a shift towards buyouts, fund managers are cautiously optimistic about the future. India and Japan are emerging as attractive markets for PE investors, while Greater China's share of the market continues to decline.

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