Deal Street Asia
The increased caution among limited partners (LPs), travel restrictions, and unfavorable market conditions were also among the factors that hampered efforts to launch new funds in 2020.
"It's been a rollercoaster year for private equity in Asia," said Kiki Yang, co-head of Bain & Company's APAC Private Equity practice. "But while dealmaking ended the year on a high, COVID-19 has not gone away, and building a portfolio resilience will be a cruicial skill for leading investors."
Bain expects deal value likely to continue at a healthy clip as the dearth of exits in 2020 and "mounting stores of unspent capital" increase pressure on GPs to trim portfolios and find new investments. Several large deals that were delayed in 2020 are likely to close this year.
Andrea Campagnoli, a partner in Bain & Co's PE practice based in Singapore, said Asia Pacific has been "an exciting and dynamic region" for any global PE fund.
"Improving macroeconomic conditions couple with many exciting investment opportunities, especially in digitally advanced sectors, will continue to draw strong interest from investors," she added.