In the first edition of our private equity-focused newsletter, we look at what industry executives are thinking about 2025, and what could help GPs generate DPIs in the year ahead. Don’t miss the most significant developments in PE around the Asia Pacific in the links below.
The promise to payout
The advent of the new year has reignited optimism about distributions to limited partners amid a recovery in Asia’s public equity and M&A markets.
The backlog of exits in Southeast Asia is expected to ease by mid-2025, as interest rates stabilise and IPO markets recover. Among the strategies for liquidity are secondary buyouts and continuation funds, as well as M&As.
A new dawn for listings
After breaking an all-time record, India is one of the most anticipated IPO markets with blockbuster listings such as Warburg Pincus-backed HDFC planning to raise up to 125 billion rupees ($1.5 billion) and Carlyle’s Quest Global Services reportedly heading to the stock market.
The likely Philippine IPO of GCash’s parent company, also backed by Warburg, is expected to become one of the largest PE-backed listings in the region that could take place as soon as this year, sources told DealStreetAsia.
Creador-backed Loob Holdings is also said to be preparing to list in Malaysia this year after the country’s IPO market hit an 18-year high. The Indonesian unit of another Creador portfolio company, MR DIY debuted on IDX the week before Christmas, raising 4.15 trillion rupiah ($254 million).
In Greater China, Legend Capital-backed Chinese toymaker Bloks Group raised HK$1.67 billion ($215 million) in its market debut. Still, investors in China’s once-vibrant PE scene are watching for policy action on regulations and tariffs that will impact dealmaking.
Global M&A uptick
M&As could help drive returns that differ from what many LPs have dubbed as ‘synthetic gains’ from financial engineering. “LPs, especially those in Asia, typically favour traditional exit routes such as M&As, IPOs, and trade sales for distributions. While strategies like NAV-based financing and dividend recaps are emerging, their use remains limited,” an LP in several funds in Southeast Asia told DealStreetAsia.
In India, companies with global corporate governance practices are commanding premium valuations and drawing significant foreign capital, Goldman noted. Corporate spinoffs from multinational companies also stand out as a major driver.
‘SE Asia’s venture sector can still deliver returns’
After a volatile past five years, Southeast Asia’s venture capital ecosystem is going through a consolidation phase and holds the potential for the “best returns”, notes one LP. Sunil Mishra, partner at Adams Street Partners, says the firm remains positive on the region’s demographics and development, but smaller funds are the way to go in Southeast Asia.
Slowdown in China boosts healthcare deals in APAC
Deal volume in the healthcare sector is shifting toward India, Japan, and South Korea, driven by the countries’ macroeconomic fundamentals, according to Bain & Co’s latest report.
India’s healthcare sector continues to draw private capital, accounting for 26% of the Asia-Pacific region’s total deal value. “In 2024, there were significant private transactions from both financial sponsors and strategics in the hospital space, driven mainly by the objective of building scaled platforms, which also led to M&As for consolidation,” said Sunil Thakur, partner at Quadria Capital in a recent interview.
In Japan, investments in healthcare have grown at 20% annually since 2019, driven by demographics, as well as corporate governance and changes to the M&A code, which have opened up more opportunities for carve-outs and privatisations.
The case is similar in South Korea, where regulatory changes to attract foreign capital especially in the medtech sector helped push its share of regional deal value to 26% in 2024.
Top PE updates from APAC
Investments
TPG has invested in floriculturalist Hasfarm Holdings in a deal that could value the business, at over $500 million. A strategic buyer is likely to be participating in the deal, paving the way for an exit for Lombard Asia.
PAG closed a deal in Pravesha Industries, an India-based pharmaceutical packaging company, and announced that it is investing in another plastic packaging company – Manjushree Technopack.
Exits
Everstone Capital and Goldman’s alternative investment arm have agreed to sell their co-control stakes in US health tech service provider Omega Healthcare to Ontario Teachers’ Pension Plan. Omega has operations in India, the US, Colombia, and the Philippines.
The deal follows Everstone’s exit from QMetry, a US SaaS company for test management, to Vista Equity-backed SmartBear. The company’s revenues grew around 2.5x under Everstone’s ownership, it said in its social media announcement.
Northstar Group has exited its holdings in Indonesian B2B hospitality marketplace MG Group to Creador while Bloks Group’s IPO in Hong Kong will pave the way for its sponsors to cash out, including Yunfeng Capital, Legend Capital, and Gaorong Capital.
People moves
Macquarie’s asset management arm has tapped ex-Dymon Asia Private Equity Gabriel Ho as its new managing director in a move to ramp up its infrastructure game in Southeast Asia. Ho previously led investments in healthcare, logistics, education, and consumer sectors at Dymon, where he spent around 12 years, per his LinkedIn profile.
Temasek-linked infrastructure debt investor Clifford Capital has roped in APAC private credit veteran Vidyasagar Pulavarti from Apollo’s Sydney office as CIO for its newly launched asset management business.
What to look out for
BlackRock kicked off the first earnings season of 2025 on Wednesday after Partners Group announced its AUM a day prior. EQT is set to announce its full-year financial results on January 23.
The Bank of Japan’s policy meeting runs from January 23-24, and there are already expectations of a rate hike.
Donald Trump is to be inaugurated as the 47th US President on January 20. The international business community is already gearing up for tariffs and taxesto take centrestage.
