Private equity (PE) activity in Southeast Asia (SEA) experienced a significant slowdown in the second quarter of 2026, with only US$935.5m deployed across 10 deals, according to the EY-Parthenon Southeast Asia Private Equity Pulse. This marks a stark contrast to the first quarter, which saw 19 deals worth US$9.2b. The decline is attributed to heightened geopolitical uncertainty, leading to increased investor caution and prolonged decision-making cycles.
Singapore continued to dominate the region’s PE landscape, accounting for 70% of the deal volume, reinforcing its status as a financial hub. The real estate sector led the way, representing 90.8% of the total deal value, driven by a single transaction that secured US$850m in additional equity capital. In contrast, the technology and consumer sectors accounted for 5.3% and 2.2% of the deal value, respectively.
Despite the slowdown in investments, exit activity showed improvement, with 11 exits generating US$4.2b, the highest liquidity conditions since Q1 2022. Luke Pais, EY-Parthenon Asean Private Equity Leader, noted, “Improving exit activity provides an encouraging signal for capital recycling and points to a more constructive outlook for sponsors in the quarters ahead.”
The report also highlighted the evolving private debt market in SEA, which is benefiting from growing investor interest in the Asia-Pacific region. Although still in its early stages, the market recorded one private debt fund close, raising US$320m. Singapore remains central to this growth, supported by a mature regulatory framework and strong institutional investor participation.
