A snapshot of Corporate/M&A and Capital Market trends in Asia-Pacific
Market recovery and adaptation to volatile markets have been themes across the Asia-Pacific region over the past year. While the number of high-value M&A transactions has remained subdued, the region has seen robust mid-market activity. Japan and India continue to stand out in deal value and volume, respectively. Private equity activity also increased, particularly through exits and take-privates, with one interviewee noting that there is a “propensity of private equity players to monetize their stake through public market exits.” For some private equity firms, however, challenging exit conditions have led them to focus on restructuring portfolios and investments in the region.
Equity capital markets trends reflect M&A. One market commentator observed that “there have not been a lot of big IPOs”, though adds “that’s showing some signs of thawing.” India led the region with the highest number of IPOs, described by an interviewee as “the hottest IPO market in the world last year,” which is “seeing a steady diet of equity and debt.” Malaysia, Thailand, and Indonesia, meanwhile, raised the most funds in Southeast Asia. Despite an uptick in IPO volume, overall deal values remain low compared to recent years, underscoring the prevalence of mid-market activity.
India also had a wave of “reverse flips,” with startups and technology companies redomiciling from the US and Singapore back to India. This movement has been fuelled by India’s strong IPO market, regulatory reforms that facilitate inbound M&A, and tax benefits. Reverse flips signal both investor confidence and the strength of India’s domestic markets.
In terms of sectors, technology and data centres have been consistently active over the last couple of years, while this year we have seen a notable increase in healthcare and life sciences. Rising consumer spending among growing middle classes fuelled investment in consumer products across the region. Other key sectors include education, energy and renewables, natural resources, and infrastructure—particularly in telecommunications, transport, roads, and ports—reflecting a region in transition and growth.
Across key jurisdictions such as Japan, Australia, India, Indonesia, and Thailand, clients face the ongoing challenge of navigating an evolving landscape of local and international regulatory changes. These challenges are further heightened by the need to manage risk factors “due to changes in interest rate trends and market volatility.” Many jurisdictions have been implementing new regulations and legal frameworks for financial markets, sustainability financing, disclosure rules, and data protection, as well as industry-specific regulations in sectors such as technology and healthcare. As one interviewee summarises, “Regulatory developments will require continuous guidance to ensure compliance. Market volatility and investor sentiment will also play a crucial role in shaping transaction strategies.” Effectively addressing these concerns will be essential for clients and investors in the region.
In summary, this has been a year of resilience and recovery, with a robust mid-market, increased private equity activity and high-value take-privates. Clients will need firms that are adaptable in the face of changing geopolitical and economic factors, such as interest rates, tariffs, and volatile markets, as well as evolving legal frameworks and compliance risks.