The private equity ( PE ) market in Southeast Asia saw a sharp rebound in 2024, with deal value rising 60% year-on-year to US$16 billion, according to a recent report.

The growth, in line with broader Asia-Pacific trends, was driven by large digital infrastructure investments in Singapore and Indonesia, finds Bain & Company’s latest Southeast Asia Private Equity report.

Despite the surge in value, the number of deals slightly declined, the report notes, reflecting ongoing market friction and growing investor caution. Exit value rose 30%, led by activity in Singapore and Malaysia, yet ageing portfolios and a soft initial public offering environment continue to weigh on exits.

Fundraising remained challenging, but pan-Asia-Pacific strategies gained traction in 2024, signalling a shift towards diversified regional approaches. However, while deal value increased, Bain says investors must brace themselves for more uncertainty ahead.

Digital infrastructure, particularly data centres and telecom towers, stood out as the top-performing sector, regaining 2022 highs amid robust demand and policy support.

Fintech also captured increased attention, with Southeast Asia outpacing broader Asia-Pacific growth, driven by the region’s strong and ongoing digital adoption. Energy and natural resources also recorded a strong year, especially in utilities and renewables.

Meanwhile, private education in emerging Southeast Asia remains underdeveloped, with structural trends that Bain argues indicate significant growth potential.

Among the major transactions was KKR’s investment in ST Telemedia Global Data Centres, a major digital infrastructure play valued at approximately US$1.3 billion, while Coatue Management and Baupost Group acquired a 20.5% stake in Digital Land Holdings, through convertible preferred shares, in a transaction worth around US$1.2 billion.

As well, BPEA EQT has completed the acquisition of PropertyGuru Group for roughly US$1.1 billion, marking another high-profile move in the region’s growing tech and infrastructure space.

“Southeast Asian investors remain concerned about exits, deal quality and fundraising,” says Usman Akhtar, head of Bain’s Southeast Asia PE practice. “Newly announced tariffs are adding complexity, prompting clients to assess both direct and secondary impacts across portfolios.”

Suvir Varma, advisory partner to Bain’s global PE practice, adds: “As geopolitical shifts continue reshaping the global investment landscape, Southeast Asian PE firms are prioritizing exit readiness, value creation and adaptability. Amid intense competition, finding a clear investment sweet spot is more critical than ever.”