One sign of the country’s increasingly robust Internet and tech sector: Since 2013 India has created more than 20 unicorns—young companies valued at $1 billion or more. By contrast, investors had a strong appetite for consumption-driven sectors, including consumer products and healthcare, which rose from the prior five-year averages by 170% and 66%, respectively, buoyed by a rising middle class in China, India and Southeast Asia (see Figure 2.3). The global market for software as a service exploded over the past decade and nearly doubled in the past five years to $140 billion, but parts of the Asia-Pacific market developed more slowly because high-speed Internet infrastructure wasn’t widely available. This comes on the back of a thriving 2019 for the region's PE and venture capital (VC) scene, which clocked US$12 billion in deal value. Concrete changes include assessing disruption and recession risks more systematically during due diligence (81%) and putting more emphasis on profitability and cost reduction for portfolio companies (58%). For the eighth year running, the Internet and technology sector attracted the largest share of capital. KUALA LUMPUR, April 16 — The year 2019 saw a 7.6 per cent decrease in investment activity by venture capital (VC) and private equity (PE) companies to … To accelerate growth, they hired a new CEO and strengthened the leadership team. Despite the recent easing of US-China trade relations and the pending US-Mexico-Canada agreement, regional and global trade frictions have created a much more complex and uncertain business environment. Let’s take a closer look at what’s included in an equity research report. For more information about the regulatory framework on private equity and venture capital in Malaysia, please contact Siti Zurina Sabarudin at +03-76245215, or e-mail at zurina@zurinalaw.com. Perfect storm or not, the effects of these trends are sobering. Other parts of the region also have spawned robust tech sectors, notably Southeast Asia (see Figure 3.12). And are competitors investing to expand production capacity? In addition to the macroeconomic challenges, record-high multiples risk making it harder for funds to sustain returns if they start to decline. Deloitte Southeast Asia Serving your needs across borders. Roughly $3.9 trillion in assets were held by private-equity (PE) firms as of 2019, and that was up 12.2 percent from the year before. The biggest challenge for investors is the region’s record-high Internet and tech deal valuations. Investors have channeled a growing pool of capital to Asia-Pacific’s burgeoning Internet and technology sector for nearly a decade. The event bought together over 360 private equity professionals including 65+ LPs representing over 125 different organizations from 10 countries. The losers, by contrast, fail to anticipate change and are buffeted by market developments. With the risk of a global recession looming, it’s a good time to ponder the lessons learned from the last one. The exercise also revealed questions about spending on digital marketing. Though the number of next-generation Internet and tech deals rose in the region, deal value declined by 37%, primarily due to China, where deal value dropped 69%, even excluding the $14 billion Ant Financial Services megadeal in 2018. The warning signals that we flagged last year for the Asia-Pacific Internet and tech sector continue to flash red. The top 20 players were involved in 31% of deals by value, roughly on par with prior years (see Figure 2.6). From 2008 to 2014, more than a quarter of the Asia-Pacific PE funds that had raised $500 million or more closed. 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