Private equity investment in Asia-Pacific asset management plunges in 2023

Private equity and venture capital investment in asset management companies across Asia-Pacific slumped in the first seven months of 2023, overshadowed by a slew of mega-deals the previous year.

Year to date through July 27, private equity deal value stood at only $52.6 million, compared with $10.93 billion in the same period in 2022, according to S&P Global Market Intelligence.

The number of deals also declined to 11 from 15 transactions year over year.

In the second quarter, transaction value slid to $46.4 million from $655.5 million a year ago. The number of deals grew to nine from seven transactions year over year.

The slump in deal value was due to two multibillion-dollar deals announced in the first half of 2022.

In the largest private equity transaction in Asia-Pacific asset management in 2022, EQT AB (publ) bought fellow private equity firm Baring Private Equity Asia, now BPEA EQT, for $7.45 billion.

KKR & Co. Inc.'s purchase of real estate asset manager Mitsubishi Corp.- UBS Realty Inc. came next with $1.94 billion.

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The slump in deal value also mirrored the decline in the overall private equity investments in the region in the first half, which came in at $14.37 billion, down 40.3% on an annual basis.

Biggest deals

So far, the biggest transaction in 2023 was Proparco SA's $35 million equity investment in Quadria Capital Investment Management Pte Ltd., a healthcare-focused private equity firm.

Hangzhou Taige Equity Investment Partnership Enterprise's announced acquisition of a 19% stake in Hangzhou, China-based Hangzhou Kechang Technology Consulting Co. Ltd. was next with $6.2 million.

In one of the latest deals announced in the region, Ares Management Corp. agreed to buy private equity firm Crescent Point Capital. The Singapore-based firm had about $3.8 billion of assets under management as of March 31.

In 2023, Singapore secured the largest amount of investment with $35 million, on the back of the Quadria deal. China and Australia came next with $6.2 million and $5.9 million, respectively.