- Private equity deal value in Greater China slumped 53 per cent in 2022, shrinking its share in Asia-Pacific to a nine-year low while India’s cake expanded
- Funds are excited about values in Japan, succession planning at conglomerates like Hitachi, Olympus and Toshiba, EY says
Global private equity funds are looking at India and Japan for sweeter deals, focusing away from mainland China as geopolitical strains with the US raise hurdles and hurt prospects for stock market exits, according to EY consultants.
“India has become a big beneficiary of China de-risking,” said Luke Pais, Asia-Pacific private equity leader. “China-specific capital raising has slowed down and relocated increasingly to India.” Japanese companies are undervalued and low financing costs make it an attractive market, the firm added.
Asia-Pacific deal value plunged 44 per cent to US$198 billion in 2022, with exits and fundraising falling sharply below 2021 levels, according to Bain & Co’s survey published in March. Greater China, the region’s powerhouse, suffered the biggest contraction in deal activity, it added.
