Private equity deal value across the region went up 8% to U$6.1b QoQ.

Singapore witnessed the largest private equity (PE)-backed transaction in Southeast Asia in Q3 2024, according to EY.

In its Quarterly Private Equity Update, the global consultancy firm reported that Southeast Asia's largest PE-backed deal last quarter was Warburg Pincus' US$1.2b acquisition of business parks and specialist facilities in Singapore.

Another major transaction involved the US$1.15b exit of PropertyGuru, a Singapore-based online real estate marketplace, by KKR and TPG Capital.

Real estate remained the dominant sector, accounting for 40% of PE deal value in the region, with Singapore's high occupancy rates and stable rents attracting significant investor attention.

Singapore has also seen a rise in family office investments, driven by favorable policies such as the variable capital company structure.

Across Southeast Asia, EY data showed PE deal value reached US$6.1b across 20 transactions in Q3, marking an 8% increase in deal value from the previous quarter despite a reduction in deal volume.

Healthcare and infrastructure followed real estate, comprising 18% and 16% of total PE investments, respectively.

"The ongoing interest in sectors like digital infrastructure, healthcare, and renewables signals a robust pipeline for diverse deal activities in the coming months," said Luke Pais, EY Asia-Pacific Private Equity Leader. "With the lower interest rate environment, we anticipate heightened IPO activity and increased family office commitments, adding momentum to the region's private equity landscape."

Pais added, "Private credit, especially in the mid-market, will continue to expand as demand grows for customized financing solutions."