Investor-backed M&A activity gains momentum in Southeast Asia region
Southeast Asia saw a strong start in private equity investment in the first quarter of 2026. According to analysis from EY-Parthenon, the region saw a surge in both deal volume and value.
In the first three months of the year, Southeast Asia saw 19 private equity-backed investments worth $9.2 billion, compared with 14 deals worth $2 billion in the same quarter last year. Overall, deal value surged 2.5 times year-on-year, while deal volume increased by 36% over the same period.
Deal activity was driven by global investors executing megadeals in the region, particularly within the digital infrastructure space. EY-Parthenon said that investor appetite for digital infrastructure continues to intensify, underpinned by hyperscaler expansion, rising AI-driven compute demand, data localization mandates, and the significant opportunity to scale power and connectivity assets across Southeast Asia’s structurally underpenetrated markets.
Beyond infrastructure (77%), consumer (14%) and technology (7%) were the next most active sectors.
From a regional perspective, Southeast Asia accounted for approximately 17% of total private equity deal value in Asia-Pacific. Singapore remained Southeast Asia’s primary hub, accounting for 94% of private equity deal value and 68% of deal volume across the region.
Luke Pais, Private Equity Leader for Asean at EY-Parthenon, said: “Southeast Asia seems firmly back in deal making mode. Despite macroeconomic headwinds, investment momentum is strong, with capital flowing across sectors. Crucially, exits are gaining traction, restoring confidence and liquidity to the system. This dynamic creates a powerful flywheel that is likely to drive a more active investment and realization environment in the coming years.”
In other findings of the report, the region recorded six exits generating $1.7 billion in realized proceeds. Aggregate exit value increased by 75% year-on-year, while exit volume remained unchanged.
Fundraising in Southeast Asia remained muted in Q1 2026, reflecting a more measured approach from limited partners (LPs) amid a sharp global slowdown, as heightened uncertainty across global markets and the impact of the situation in the Middle East continue to weigh on investor sentiment.
“The current economic environment underscores the importance of disciplined capital deployment and active value creation,” noted Pais. “Sponsors that can effectively manage cost pressures and build operational resilience across portfolios would be better positioned to unlock liquidity, capitalize on acquisition or bolt on opportunities and generate returns as market conditions normalize.”
