Private equity dealmaking in Asia Pacific climbed 11% to $176bn in 2023, with larger buyouts driving the recovery, according to a new report by Bain & Company.

Buyout transactions made up more than half of all deals last year, marking a shift even in traditionally growth-focused markets such as India, Southeast Asia, and Greater China.
The region’s rebound was highlighted by Blackstone’s $16bn acquisition of Australian data centre operator AirTrunk, including debt and committed capex.

While overall activity remains below the record levels of 2021, Bain sees positive momentum. “We expect PE-led deals to softly pick up this year, and perhaps even accelerate into the next couple of years,” said Sebastien Lamy, co-head of Bain’s APAC Private Equity practice.

Bain also highlighted a rising trend in carve-out opportunities, particularly in Japan and South Korea, where conglomerates are divesting non-core assets. This shift is drawing attention from global and regional financial sponsors looking to diversify away from China amid ongoing geopolitical and macroeconomic uncertainties.

Concerns around interest rates and market volatility remain key challenges to closing deals in the region.