In this edition, we examine the private equity potential in Thailand, which is supported by strong macroeconomic drivers and pockets of untapped, investable opportunities, and bright prospects for Vietnam’s exit market following the FTSE upgrade.
Quiet yet resilient
Thailand’s private equity market is inconspicuous — and that could be its strength. Smaller than Indonesia and less headline-grabbing than Vietnam’s, it remains orderly and institutional, yet shows signs of evolving towards developed-economy dynamics.
Let’s examine the macroeconomic numbers: Thailand’s GDP grew 2.5% in 2024 and 3.1% year-over-year in Q1 2025, supported by tourism, public investment, and exports. However, full-year growth is projected at 1.8% due to high household debt, flat wages, and external pressures.
Inflation remains low, with headline CPI down 0.3% in June 2025 and core inflation at 1.1%, prompting the Bank of Thailand to cut rates to 1.8% in May. The baht has remained stable, supported by strong reserves and a current account surplus.
For PE investors, these numbers signal a predictable, steady ecosystem, according to Collyer Capital in its latest ASEAN PErspectives.
“People see a country with an aging population and dynamics that differ from others in the region, like Singapore, and assume there’s less opportunity. But it’s not that opportunities don’t exist — they’re just different,” notes Eric Marchand, Managing Partner, Collyer Capital.
Thailand’s seniors are projected to reach 20% of the population by the mid-2030s, reshaping demand towards healthcare, risk protection, productivity solutions, and higher-quality services.
Hospital networks outside Bangkok are seeing rising demand for chronic care and wellness; education and workforce development are expanding amid a tightening labour pool; traditional industries like automotive, electronics, and food processing are adopting technology to boost productivity; and urban, older consumers are driving demand for convenient, high-quality retail and services, while tourism — including wellness and medical travel — remains a key contributor.
Could Thailand’s aging population and shifting demand patterns position it as a distinctive, investable opportunity in Southeast Asia for those looking beyond headline growth?
The report, in fact, alludes to the standard operating and investment playbooks that resemble those in developed markets across Asia, Europe, and North America, offering blueprints for successful outcomes.
But sourcing deals is time-consuming and relationship-driven, with much relying on proprietary discussions. In Thailand, careful negotiation with founders is essential to uncover opportunities in this often-overlooked market.
Dealmaking does follow a textbook growth-capital approach: take a minority stake, help founders improve governance and operations, and deliver a more efficient, attractive business to a future buyer.
A well-governed company with strong margins will always attract larger trade or financial buyers while keeping the option of a listing on Thailand’s capital market.
This growth-capital model, while not unique to Thailand, underpins the approach across the region. It is old-school but tried and tested globally, with some Thai managers particularly refining it. The Fullerton Thai Private Equity Fund, launched in 2022 with over $100 million, demonstrates this model, targeting family-owned businesses in transition, conglomerate spin-offs, and sectors where Thailand holds global advantages. As of April 2025, it has made eight investments across consumer, industrial, and healthcare sectors.
Thailand remains a small, little-known market with a handful of active players. And Marchand added that it is likely to remain an insider’s market for the foreseeable future. As high-growth regional economies normalise closer to Thailand’s pace, which could take over a decade, perception may shift, drawing more attention to its consistent performance.
Recent successes by Thai managers reinforce this potential. For instance, International Finance Corporation is considering up to $60 million in Lakeshore Capital’s latest vehicle, while 10 Bridge Capital held a $195 million first close of its fourth Thailand-focused fund in September 2024, and 9Basil (now Arc 9 Growth Fund) closed its second fund at $127 million in August 2024.
With lower competition and scope to create value through governance improvements, Thailand’s well-functioning capital markets provide credible exit options via trade buyers or public listings. Its quiet profile may seem like a disadvantage, but is it possible that it is precisely where opportunity lies for disciplined investors?
Vietnam’s IPO exit hope rekindled
With IPO activity subdued across SE Asia, the lack of liquidity has weighed heavily on PE investments in Vietnam. FTSE Russell’s reclassification of Vietnam to emerging market status has added a dose of optimism to exit prospects in the country.
While PE holdings are changing hands more often through secondary or strategic sales, several local PE firms have sought a primary exit route through listing.
Mekong Capital, for example, sees it as the most important exit path for its latest two funds.
“One of the advantages of PE in Vietnam is that it’s relatively easy to list locally, either on UPCoM or HOSE [the mainboard], and the costs associated with listing are not too high,” said Mekong Capital’s Founder and Partner Chris Freund.
In addition to consumer finance company F88, which publicly announced IPO ambitions, Freund told DealStreetAsia that other investees, including mattress retailer Vua Nem and biotech firm LiveSpo, are mulling domestic listings over the next two years. Gene Solutions, meanwhile, plans an overseas IPO – likely on the Hong Kong Stock Exchange – after moving its regional headquarters to Singapore.
Vietnam’s ultimate goal is to expand its stock market to 120% of GDP by 2030 from the current level of about 75%, which will provide a significant liquidity boost.
With billions of US dollars anticipated in foreign inflows, after three consecutive years of net foreign outflows, Vietnam’s capital markets are at a turning point, according to analysts from VinaCapital, whose PE arm invests in private companies with a view to listing them.
“There are not many countries like Vietnam in the world. What the country provides is very meaningful,” observed Thomas Nguyen, Chief Global Markets Officer at local asset manager SSI, drawing parallels with China’s past role as a global growth driver.
However, he noted that it would be a “gradual, unwavering” trajectory, and urged private investors to be patient.
For large-ticket deals, there is still too much money chasing too few opportunities in Vietnam. The market is watching signals from buyout firms like Warburg Pincus, CVC Capital, and KKR to see if they can continue to score blockbuster IPOs in the country.
To sustain long-term interest from institutional investors in an emerging market like Vietnam, analysts have pointed out that, beyond the market upgrade, there needs to be prompt action in phasing out foreign ownership limits, forex hedging instruments, detailed disclosures in English, and market data standardisation.
The LP View
Japan Post Bank, one of the world’s largest limited partners, has adapted its portfolio strategy by maintaining steady commitments and allocating more to cash flow-generating assets such as mezzanine and infrastructure, which now account for around 30% of its 7.5 trillion yen ($51 billion) private equity portfolio. That is how the asset allocator is navigating a private markets landscape marked by slower deal activity and tighter exit conditions.
Top developments
Brookfield is turning its eye towards Asia, particularly in the emerging economies in Southeast Asia, where it sees opportunities to deploy large-scale capital in renewable infrastructure development.
Life science and healthcare-focused Decheng Capital has raised $452 million for its fifth flagship US dollar fund, which has a target corpus of $700 million.
In India, Raise Financial Services — the parent company of stock trading platform Dhan — raised $120 million in a Series B funding round led by Hornbill Capital, entering the unicorn club.
Membrane Group, a provider of advanced water and wastewater treatment solutions, amassed $50 million from private equity major GEF Capital Partners’ South Asia Growth Fund III.
