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Covid-19 shook ASEAN PVEC hard!


KUALA LUMPUR 2 July - Before the pandemic outbreak of Covid-19 wrecked the economic sector of every nation, Southeast Asia is one of the fastest-growing and most dynamic markets in the world. 

In 2019, private equity funds secured an aggregate of $6 billion. However, amid the Covid-19 ,no capital was raised by ASEAN-focused private equity and venture capital (PVEC) funds in the first quarter of 2020.

As of September last year (the latest data available), ASEAN PVEC assets under management had reached a record-high of $29 billion, an increase of 23% from December 2018. 

Head of Asia Research & Operations at Preqin , Ee Fai Kam said in a statement, ASEAN private equity was at its best-ever position at the end of last year. 

“But the outbreak of the COVID-19 pandemic has affected the ASEAN private equity market. Travel restrictions have had an outsized impact on fundraising activities in ASEAN, as the bulk of the investor base is situated offshore.

“Dealmaking also decreased amid the pandemic, but with the new environment, new opportunities are coming up in emerging sectors,” said him. 

The dealmaking slumped dramatically where in the first quarter of 2020, deal value reached $0.2 billion and $2.7 billion for private equity-backed buyout deals and venture capital deals respectively. 

Despite the downside, demand for quality healthcare in Southeast Asia is rising exponentially, digital transformation is imminent, especially in companies and traditional financial institutions. -