PEbacked MA totals 13.5 bln in Q1, preliminary data shows
PEbacked deals nearly halved in China in Q1
Volatile markets, geopolitical tensions curb PE deals, Bain Co says

HONG KONG, March 25 Reuters Private equitybacked mergers and acquisitions in Asia are set for their worst start to the year in nearly a decade, as a lull in dealmaking in China and broader economic and geopolitical uncertainties dragged on sentiment, data showed.

PEbacked MA in Asia totalled 13.5 billion over January to March 19, down 32 from the corresponding yearearlier period, marking the worst first quarter since 2015, preliminary data from LSEG showed. That compares with a 21 rise in global PEbacked deals to 136 billion, it showed.

PE firms in Asia are sitting on record levels of dry powder, or unspent cash, but slowing economic growth, high rates, volatile markets and geopolitical tensions have curbed their investments and exits, and affected fund managers39; ability to raise new fund, consultancy Bain Co said in its 2024 regional PE report published on Monday.

Exits will have to happen, Sebastien Lamy, Tokyobased cohead of Bain Co39;s APAC PE practice, said. The longer holding periods, aging portfolios it39;s not just putting pressure on returns, but it39;s putting pressure on the ability to reraise.

According to data provider Preqin, PE funds39; exits in Asia via IPOs, trade sales or secondary buyouts slumped 51 to 4.9 billion in the first quarter, the lowest since the first three…