Digital infrastructures and renewables are expected to remain as primary beneficiaries in private equity in Southeast Asia, as the market regains momentum following a sharp moderation in 2025.
According to EY, the decline in private equity deal value in 2025 mirrored a more cautious investment environment compared with 2024, as a total of US$9.1 billion was deployed across 59 PE-backed deals, posing a 43% year-on-year deal value fall from US$16 billion across 67 deals. This was attributed to continued deal activity but fewer megadeals.
Southeast Asia saw four megadeals in 2025, compared with eight in the previous year. EY says that among the deals where values were disclosed, average deal size dropped to US$267 million from US$356 million a year ago.
Digital infrastructure accounted for 42% of PE investments in 2025, followed by telecommunications with 12%, real estate with 10%, and energy with 10%.
Meanwhile, a more broad-based activity compared to 2025 is expected, with significant transactions in other sectors, according to Luke Pais, EY-Parthenon Asean Private Equity Leader.
