SINGAPORE Trends and Developments Contributed by: Evelyn Wee, Sandy Foo, Tracy-Anne Ang, Terence Quek, Hoon Chi Tern, Goh Jun Yi and Tricia Teo, Rajah & Tann Asia Singapore LLP
An Overview of the Private Equity Landscape in Singapore Singapore remains a central hub for international pri - vate equity (PE) fund managers seeking opportunities in the South-East Asia region, especially since South- East Asia deal activity is, to an extent, driven through Singapore. South-East Asia is also a key investment destination for global investors aiming to diversify their portfolios. Many international fund managers have already established a presence in Singapore and are now broadening their focus or expanding into new asset classes. Strong PE activity in Singapore continued amidst the sharp rebound in PE deal values in South-East Asia in 2024, particularly in specific sectors such as digital infrastructure, healthcare and semiconductors. Investors continue to be focused on sectors which are crucial to, and align with, global megatrends and the city-state’s strategic priorities. However, the recent tariffs introduced by the second Trump administration resulted in significant uncer - tainty in PE deal-making in the first half of 2025, with the macro-economic uncertainties leading to slower M&A activity, wider valuation gaps and more cautious investment strategies. This has resulted in a plunge in PE deal value in South-East Asia by nearly half in the first six months of 2025 compared with the same period in 2024. Increased caution exercised by PE firms before enter - ing into deals may see firms extending due diligence to assess tariff exposure and shifting focus towards sectors which are less affected by tariffs, such as technology and healthcare. Despite global trade tensions, South-East Asia as a region is well positioned for growth, and Singapore’s strategic location, its stable political environment and leadership, and its role in digital transformation allow it to remain attractive to regional and global capital and retain a central role in deal-making across borders. Market Performance According to a report by Bain, South-East Asia’s PE market rebounded strongly in 2024, with deal value rising 60% to USD16 billion, aligning with broader
Asia-Pacific trends. This growth was led by Singapore and Indonesia, driven by substantial investments in digital infrastructure. In 2024, Singapore took the lead in South-East Asia’s PE market, securing USD7.6 billion of capital invest - ment, almost 50% of the USD16 billion that was raised across South-East Asia as a whole. Singapore also led the region in deal count, with 60 of the 98 transactions in 2024. This surge in deal activity was abruptly curtailed with the introduction of tariffs by the second Trump admin - istration, with the total value of PE investments in the region plummeting 46.6% in the first half of 2025 to around USD3.1 billion as compared with the same period in 2024. Shareholder Involvement – Active Management and Shareholder Activism Active management PE in Singapore, in line with global trends, is experi - encing a significant shift towards identifying synergies and value creation within portfolio companies in order to drive growth. By actively managing and becoming more involved, PE investors can directly drive value creation and unlock greater potential for higher invest - ment returns. This is especially so for investments into small and medium-sized enterprises and where PE investors have chosen to adopt a bolt-on acquisition strategy. In such circumstances, the implementation of a unified management approach and expansion strategy would facilitate the growth of the platform as a whole. Shareholder activism Shareholder activism has been on the rise, and its impact on deal-making in Singapore, particularly in public companies, is likely to be felt more keenly going forward. While perhaps less prevalent in the PE con - text due to the usual ownership structure and invest - ment model of PE investors, increased shareholder activism sometimes determines the success or failure of a transaction, and better shareholder engagement has become increasingly necessary in M&A activities and PE investments, particularly in instances where PE investors are involved in exits, or as PE investors
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