The poor global economic environment is making it tough for venture capital (VC) firms in Southeast Asia to find buyers for their portfolio companies, according to investors. As public markets languish, demand from M&A buyers, private equity (PE) sponsors, and institutional investors has also declined, they said.
“Would-be buyers are focused on their own businesses and facing higher costs of capital, meaning less valuable shares and higher borrowing costs to finance acquisitions,” said Gavin Teo, general partner at Altara Ventures.