
Weekly digest - March 22 2023

By the Numbers
AVCJ RESEARCH
JAPAN'S LIQUIDITY STREAM
When examining Asia PE exits by market, following the money can be frustrating. Region-wide, the picture is reasonably clear: deal-making slumped when COVID-19 hit, rebounded in the second half of 2021, then lingered around pre-pandemic levels before weakening in the second half of 2022. Market-by-market, the picture is cloudy.
Australia is responsible for much of the exit deal value in the past two years, yet during this period its quarterly totals have ranged from USD 1.7bn to USD 15.8bn, according to AVCJ Research. Similar peaks and troughs are visible in other jurisdictions. Exits for the first quarter of 2023 to date have been abysmal, apart from in Korea where one transaction makes up 75% of the regional total. In terms of exits by volume – where a minority exit from a tiny start-up counts for the same as a blockbuster trade sale – there is a bit more consistency. The China contribution has fallen; the India contribution has risen; Korea and Southeast Asia are, admittedly, all over the place; and Japan appears to be a true outperformer. The number of exits region-wide neared 160 in each of the third quarter and fourth quarter of 2021. It then moderated to a quarterly average of 125 in 2022 and fell off a cliff in early 2023. Japan closed out last year with 44 exits in the final three months, more than it achieved during the same period in 2021. Fewer than 40 deals have been announced this year, but Japan still accounts for 17 of them. Many of these transactions are small and valuations often don’t get disclosed. Aspirant Group recently announced its third exit in three weeks – selling offshore drilling business Japan Drilling to a local strategic – but none of the three came with deal values. Regardless of size, they still contribute to the stream of liquidity emanating from one of Asia’s more reliable markets. ![]() All of the trends featured here were sourced from AVCJ's proprietary database, AVCJ Research, featuring comprehensive information on private equity deals, fundraises and exits.
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