Southeast Asian funds seek opportunities after sub-par performance

Private equity and venture capital investors seen as waiting for more 'exit events'

Buildings in Singapore. Southeast Asian private equity and venture capital fund performance has worsened in recent years, though two recent reports outline a potentially bright future. (Photo by Hiroki Endo)

NGUYEN THI BICH NGOC, DealStreetAsia

January 29, 2024 15:06 JST

HANOI -- The performance of Southeast Asian private equity and venture capital funds has worsened in recent years in a market fraught with challenges, but the future looks bright because the region still offers significant opportunities, according to two recent reports.

The net internal rate of return (IRR) of funds launched between 2018 and 2020, according to the latest vintages tracked by the investment data firm Preqin, stood at 17%, 17.3% and 10.6%, respectively, declining from 22.9% in 2016 and 20.2% in 2017. Net multiples were also lower for later vintages.