Southeast Asia’s Private Equity Investors Eye Healthcare, Energy, Digital Infrastructure

MoFo partner Steve Tran was quoted in a recent article, “Southeast Asia’s Private Equity Investors Eye Healthcare, Energy, Digital Infrastructure,” published by The Business Times.

The article explores the ongoing challenges in the private equity (“PE”) landscape, hot sectors for PE investments, and outlook for the region in 2024.

The Southeast Asia region recorded 118 PE deals in 2023 worth $8 billion, down from $10.8 billion worth of deals in 2022—largely due to rising interest rates, supply chain issues, and complex cost structures.

However, a slight uptick was observed towards the end of 2023, with larger deal volume and transactions. Industry experts expect a sustained increase in PE investments in 2024 as corporates become more optimistic to deploy dry powder as valuations improve.

Entering 2024, the key focus in Southeast Asia are sectors exposed to the rising middle class and global megatrends.

Steve says that the logistics and data center space will likely attract significant investment as digital and physical infrastructure continue to be built out across Southeast Asia.

PE Investors are also bullish on the healthcare space, given the region’s rapid population growth and rising demand for chronic care services.

Additionally, the clean energy sector is also another one to note, given the region’s efforts to tackle carbon emissions.

Steve adds that “The region has some of the world’s fastest growing economies that are underpinned by compelling demographics: a growing middle class, and a largely young population with more money in the bank and a desire to spend.”

“Governments across the region are generally also welcoming of foreign capital to help build the infrastructure that’s needed for growth and development. Southeast Asia has become a destination in its own right for capital deployment and will continue to attract PE investors’ attention as we move into 2024.”

Read the full article.