Singapore's skyline on June 6, 2020. (Photo: ST File)Singapore (VNA) – Singapore clinched three of the top five private equity andventure capital deals struck in the region in the first quarter amid markedlyslower economic activity across Southeast Asia due to the COVID-19 pandemic.
There were atotal of 141 such deals worth 1.4 billion USD in the region from January toMarch, Ernst & Young said on July 8. This was 9 percent down in terms ofdeal numbers and 65 percent lower in value compared with the same period lastyear.
The biggestfirst-quarter deal in the region was a 706 million USD investment by Krungsri Finnovate and MUFGInnovation Partners in the Singapore-based ride-hailing software company GrabHoldings.
The other twoSingapore deals that made the top five were a 75 million USD investment in eCommerce company ShopBack and a 37 million USD investment in solar energy firm Sunseap Group.
Luke Pais,Ernst & Young's M&A and private equity leader for ASEAN region, saidthere was a lot ofuncertainty in the market, but investment activity is likely to pick up pace bythe last quarter of this year.
Private equityfunds in recent months have focused on dealing with issues such as liquidity,protecting their staff, accessing incentives and ensuring that short-termadjustments are made to ensure the business has adequate resources and supportto weather the crisis caused by the pandemic.
Now they areincreasingly pivoting to deal with issues such as resumption of trading andmaking operating adjustments to the business, with a focus on what lies beyond.
The reportsaid that investors are quite bullish about the opportunities in the region -evident from the fact that 121 funds are aiming to raise 38.2 billion USD incapital markets.
Funds focusingon venture capital account for more than half of the total funds in the market,in terms of volume. This is followed by growth and buyout funds representing 19percent and 12 percent of the total./.
VNA
