Investor interest in Southeast Asia has surged since 2018 due to geopolitical tensions between the US and China, with the region emerging as a key global manufacturing hub. The SEA-6 economies are projected to grow at 5.1% annually, significantly outpacing China. However, private equity activity remains low, with Southeast Asia accounting for only 5% of Asia-Pacific deal value in 2023. Dealflow challenges persist, as managers are selective and require high-quality assets. Despite fluctuations in exit values and increasing healthcare investments, the region faces hurdles in achieving consistent DPI, with expectations for improvement amid growing interest from global investors.

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