Private equity investors in the Asia-Pacific region are exercising increased caution due to global trade concerns, interest rate uncertainties, and market volatility, according to KPMG’s latest insights. Despite these challenges, the region saw a robust $37.5 billion in private equity investments during the first quarter of 2025, indicating a strong start to the year even with a modest number of deals.
Andrew Thompson, Partner and Head of Asset Management and Private Equity at KPMG Asia Pacific, identified key trends influencing deals in the region. He noted that leaders are focusing on transactions that promote market consolidation, scalability, and technology adoption.
Stephen Bates, Partner and Head of Deal Advisory at KPMG in Singapore, elaborated on these trends in a video, emphasising the importance of strategic deals in the current landscape.
The report also explores the role of artificial intelligence (AI) in enhancing customer relationships. Guillaume Sachet, Partner in Corporate Transformation at KPMG in Singapore, highlighted the significance of the human factor in adopting new technologies, noting that AI is being used to improve operational efficiency and strengthen customer connections.
Additionally, KPMG’s study on AI trust revealed that whilst AI usage is widespread, less than half of users trust AI systems. The report delves into public expectations for AI regulation and governance.
In terms of employment trends, businesses in Singapore are increasingly prioritising talent with specialised skills to drive growth, despite facing challenges such as talent shortages and evolving employee expectations.
KPMG’s insights underscore the evolving dynamics in private equity, technology adoption, and employment, providing a comprehensive overview of the current business environment in the Asia-Pacific region.
“`
