Buyout funds are expected to continue their record-breaking spending binge in Asia for the rest of the year, but they will mostly be looking for transactions outside of China because of economic worries that are likely to outweigh any relaxation of a regulatory crackdown, according to dealmakers.
Private equity mergers and acquisitions in Asia posted a record start to the year with $167.4 billion spent since January 1 in markets such as Australia.
Buyouts in China, Asia’s biggest market for deals, however, slowed sharply in 2022, as the two-month Shanghai lockdown and other coronavirus-related restrictions in many parts of the country hurt the economy.
Private equity capital raising in Asia has hit $30.4 billion so far this year, according to Preqin.
Big deals this year include an unsolicited near-$15 billion bid by a group led by KKR & Co for Australia’s Ramsay Health Care Ltd (RHC.AX).
A number of funds are also looking to bid for Hong Kong telecoms provider HKBN Ltd (1310. HK) as its private equity investors TPG and MBK seek to exit.