Private equity fundraising in Southeast Asia remained muted in 2024, as institutional investors stayed cautious and selective amid global uncertainty and tighter capital allocation, despite the region’s long-term growth potential.
Only four Southeast Asia-focused private equity funds secured final closes during the year, collectively raising $1.32 billion. This marks a significant drop from 2023, which saw seven final closes, and represents the lowest annual fund closing count since at least 2018, according to DealStreetAsia’s latest report Southeast Asia Private Equity Funds: H2 2024 Review.
The total capital raised in 2024 also fell to a seven-year low, dipping below levels seen even during the peak of the COVID-19 pandemic. The data points to a broader retrenchment in risk appetite, with LPs scrutinising fund strategies more closely and prioritising managers with strong track records and clear paths to value creation.
Of the four funds that closed in 2024, two fell short of their original fundraising targets, while the target of one fund was undisclosed. The persistent shortfalls, extending a trend observed in 2023, suggest that even established managers are finding it difficult to meet fundraising expectations amid heightened scrutiny and more conservative LP commitments.
Industry observers cite several factors behind the fundraising slowdown, including tightening global liquidity, delayed exit timelines, and valuation mismatches. As a result, LPs are becoming more selective, favouring funds with demonstrated execution capabilities and differentiated strategies.
Johan Rozali-Wathooth, founder and CEO of Bintang Capital Partners, highlights low DPI levels as a key structural issue limiting Southeast Asia’s private equity ecosystem.
“The low DPI levels are indicative of a layer of ‘trapped liquidity’—investments made by PE investors, including institutions, family offices, and HNWIs—which are ‘stuck’ in legacy deals, creating a bottleneck preventing capital from being recycled through the system,” said Rozali-Wathooth.
Echoing this view, Chinh Hoang, Managing Partner at Excelsior Capital Vietnam, noted that in addition to global macro factors such as higher interest rates, geopolitical uncertainty, and US-China tensions, the limited availability of quality exit opportunities and low DPI levels are key reasons for the cautious investor sentiment.
“Limited exit opportunities and low DPI levels are key reasons for the cautious investor sentiment.”
Promising pipeline
While overall private equity fundraising in Southeast Asia remained subdued in 2024, interim close activity showed signs of resilience—albeit with a shift in strategy. Six Southeast Asia-focused funds reached interim closes during the year, only slightly down from seven in 2023.
What changed was the composition. All six vehicles in 2024 were small-cap funds targeting under $500 million. By contrast, the previous year included two lower mid-cap funds aiming for up to $1 billion. The shift suggests general partners are adjusting to market conditions by setting leaner targets and focusing on the mid-market, where capital deployment is more flexible and investor appetite remains relatively stronger.
Despite the softer headline numbers, there are signs of steady progress beneath the surface.
Indonesian firm Novae Capital Partners, for instance, managed to secure a $100 million first close for its debut fund last year, despite a tough fundraising climate. “A key element of our approach is to provide co-investment opportunities to LPs and prospective investors, which will offer potential LPs a direct and transparent view into how we source, underwrite, and manage our investments,” said managing partner Elliott Setiawan.
Although the company is early in its investment journey, Setiawan said his team thinks about exits from “day one” by identifying potential buyers, assessing sector appetite, and aligning with management teams and founders on a shared vision for the future.
Established players are also recording new fundraising milestones. Indies Capital followed its 2023 first close with a second in 2024, while 10 Bridge Capital is inching closer to a final close of its fourth flagship fund.
As of March 2025, there are 28 Southeast Asia-focused PE funds in the market with a collective target of $8.11 billion, of which 32% has been secured.
Sustained global appetite
To better capture the broader flow of capital into Southeast Asia, this report also tracks global and pan-Asian private equity funds with minority exposure to the region. These funds, while not region-specific, play an important role in backing larger deals and regional platforms.
In the second half of 2024, seven such funds secured final closes, down from 11 in the first half. This brought the full-year total to 18 funds raising $46.11 billion, which is well below the 25 funds and $76.46 billion secured in 2023. Despite the decline, the number of fund closes remains higher than pre-pandemic levels, suggesting that investor interest in Asia, although more cautious, is still present.
Most of these vehicles allocate only a small share, typically between 5-15%, to Southeast Asia. However, their size and scope make them important players in the region’s fundraising landscape, especially when it comes to later-stage investments and platform-building strategies.
The more cautious deployment may reflect shifting regional preferences. Markets such as India and Japan have attracted increased allocations in recent quarters, buoyed by stronger return profiles and favourable currency dynamics, which have made them more attractive to international LPs.
For Southeast Asia, the challenge is maintaining relevance within broader Asia mandates. While capital from pan-regional funds may be more selective, it continues to support the region’s larger opportunities, although on a more competitive and performance-driven basis.
The Southeast Asia Private Equity Funds: H2 2024 Review report has extensive data on:
- SE Asia-focused PE funds that secured final and interim closes since 2015.
- Fund closes by GP headquarters, fund strategy, and sector focus.
- List of new fund launches and open funds currently raising capital.
- List of global and pan-Asian funds targeting SE Asia.
- Perspectives from experts
