World Economy

SE Asia Equity Performance Worst in 12 Years

SE Asia Equity Performance Worst in  12 YearsSE Asia Equity Performance Worst in  12 Years

A study conducted by Bain & Company showed that private equity activities in Southeast Asia posted their worst ever performance since 2004, due to high competition, macro uncertainty and rich valuations, AsiaFirst reported. The study showed that total deals for 2015 were $4.2 billion, down from $7.5 billion in 2014 and about one-third of the five-year average. In its latest Southeast Asia Private Equity Report for 2016, Bain & Company said deal counts slowed to 43 in 2015 from 59 in 2014. Singapore and Indonesia, however, posted a rise in deals, leading the region with 29 that made up 90% of total deal value. RRJ Capital raised some $4.5 billion in funds while Baring Private Equity Asia secured $4 billion in funding, becoming the two biggest deals in the PE business in the region last year. About 30% of deals in Southeast Asia last year were in the internet sector, the report added. The study added that it will take time before funds fully benefit from their developing networks.