The Southeast Asian private equity (PE) market is facing challenges, particularly with IPO exits, according to Bain & Company’s 2023 review. While Japan saw an 80% increase in deal value, Southeast Asia experienced a 35% decline. The region also saw a significant drop in exit values, down 60% to USD2.8bn, with exit numbers falling 70%. The performance of local stock markets is also a concern, as lower trading activities hinder exit strategies through IPOs. Growth capital investments, which dominate the region’s PE transactions due to its burgeoning economies, are particularly affected. Bain highlights the need for stronger local stock markets to support better exit opportunities.