Private Equity - Singapore

Singapore

The deal value in the Private Equity market is projected to reach €0.71bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 28.17% resulting in a projected total amount of €0.91bn by 2025.
The average size per deal in the Private Equity market amounts to €14.20m in 2024.
From a global comparison perspective it is shown that the highest deal value is reached in the United States (€550,900.00m in 2024).
In the Private Equity market, the number of deals is expected to amount to 50.62 by 2025.

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Analyst Opinion

The Private Equity market in Singapore has seen minimal decline recently, influenced by factors like global economic uncertainties, tight liquidity, and evolving investor preferences. Despite these challenges, the market remains resilient, adapting to new investment opportunities and sectors.

Customer preferences: In Singapore, private equity firms are increasingly focusing on sectors that cater to the evolving demands of a tech-savvy and health-conscious population. A notable trend is the rise in investments in digital health and telemedicine platforms, reflecting a cultural shift towards convenience and personalized care. Additionally, as younger generations prioritize sustainability, there is a growing interest in environmentally responsible businesses. This convergence of technology and sustainability is reshaping the investment landscape, driving private equity to explore opportunities in innovative, eco-friendly ventures that resonate with changing consumer values.

Trends in the market: In Singapore, the private equity market is experiencing a notable shift towards investments in digital health and telemedicine, as healthcare providers increasingly adopt technology-driven solutions to enhance patient care. Concurrently, there is a surge in interest for startups focused on sustainability, with private equity firms targeting eco-friendly ventures that align with the values of younger consumers. This dual focus on health and sustainability is not only reshaping investment strategies but also encouraging collaboration among industry stakeholders, fostering innovation, and creating new opportunities for growth in a rapidly evolving landscape.

Local special circumstances: In Singapore, the private equity market is uniquely influenced by the nation’s strategic location as a regional hub for innovation and finance, fostering a thriving startup ecosystem. The government’s strong regulatory framework and support for technology adoption in healthcare create a conducive environment for digital health investments. Culturally, the emphasis on high-quality healthcare and sustainability aligns with the values of a tech-savvy population, driving demand for eco-friendly and health-focused startups. This convergence shapes investment dynamics, attracting capital and expertise to address emerging needs.

Underlying macroeconomic factors: The private equity market in Singapore is significantly influenced by macroeconomic factors such as central bank policies, particularly interest rates. Low interest rates foster an environment conducive to capital availability, encouraging private equity firms to leverage inexpensive debt for investments. This environment enhances the attractiveness of funding innovative startups, notably in technology and healthcare. Conversely, rising interest rates may lead to tighter financing conditions, potentially dampening investment activities. Additionally, global economic trends, such as trade relations and inflationary pressures, affect investor sentiment and capital flows, further shaping the dynamics of Singapore's private equity landscape.

Methodology

Data coverage:

The figures are based on deal value, number of deals, the average size of each deal, and assets under management within the Private Equity market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, and publicly available databases. In addition, we use relevant key market indicators and data from country-specific associations, such as: GDP, total investment (% of GDP), household wealth (per Adult), high income (% of population), and number of high-net-worth individuals (HNWI). This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are total investment (% of GDP), household wealth (per Adult), number of high-income persons, and number of high-net-worth individuals (HNWI).

Additional notes:

The market is updated twice a year in case market dynamics change.