Asia Private Equity Set for Modest Uptick After Slow 2022

Singapore-based Morrison Foerster Private Equity partner Steven Tran was quoted in a recent article, “Asia private equity set for modest uptick after slow 2022,” published by the AsianInvestor.

The article explores how private equity dealmaking in Asia could see a modest uptick in 2023 despite the challenging macroeconomic, geopolitical, and regional conditions in the past year.

Steven comments, “We are already seeing activity pick up as our PE clients believe there will be a significant improvement in the Chinese economy by Q2. We anticipate that North America and Europe headquartered funds may allocate additional funds to invest in China as economic growth outstrips growth in North America and Europe in 2023.”

He further adds, “There is also still a huge amount of dry powder earmarked for investments across Asia that financial sponsors need to deploy, and strategic investors in Asia and elsewhere continue to look for growth beyond their home markets.”

The data center, industrials, renewable energy projects, and life sciences sectors in China are also anticipated to grow in the coming year.

 In terms of Southeast Asia, Steven says, “We expect Singapore, Indonesia and Vietnam will again be the preferred investment destinations for financial sponsors this year as they deploy capital across the region.”

 Read the full article.