Private equity (PE) activity in Southeast Asia (SEA) experienced a significant downturn in 2025, with deal values plummeting by 43% to $9.1b across 59 deals, according to the EY Southeast Asia Private Equity Pulse 2025 report. This decline reflects a more cautious investment climate compared to 2024, which saw $16b across 67 deals. Despite this, the market began to regain momentum in the latter half of the year.
The report highlights that digital infrastructure dominated PE investments, accounting for 42% of the total, followed by telecommunications and real estate. Luke Pais, EY-Parthenon Asean Private Equity Leader, noted, “Whilst 2025 started with robust activity in Q1, geopolitical volatility and concerns over potential US tariffs led to more cautious investor sentiments seen in Q2. However, PE investment activity in SEA rebounded in Q3.”
Singapore maintained its status as a regional anchor, contributing over 74% of the total PE deal value. The region also saw an improvement in exit momentum, with 33 deals generating $4.4b, an 18% increase in volume year-on-year. Fundraising efforts in SEA also showed promise, with 10 PE fund closures raising $4.6b, a 97% increase from the previous year.
Looking ahead, the report suggests that digital infrastructure and renewable energy will continue to attract significant investments in 2026, as the market shifts towards value creation-led PE strategies. The private credit market in SEA is also poised for growth, driven by demand from mid-market corporates and financial sponsors.
