ENR private equity deals in APAC grow amidst energy transition focus

This is despite the overall private equity decline in the region.

The energy and natural resources (ENR) sector is the only industry in the Asia Pacific that saw growth in private equity deal value and volume in 2023, signifying investors' increasing interest in energy transition-related assets.

In a report, Bain & Company said the sector's deal value reached $22b, increasing by 7% compared to its previous five-year average, accounting for a 15% share of the total.

One of the notable investments is Japan Investment Corporation’s $6.9b buyout of JSR.

Meanwhile, the deal count rose by 46% versus the previous five-year average. 

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“(Limited Partners) and GPs (General Partners) are increasingly focused on energy-transition-related assets as a growing number of organizations make net zero commitments and regulations encourage sustainable practices,” the report read.

“GPs also are betting that the energy transition will create a lucrative investment opportunity,” it added.

Overall, private equity deal value in the region declined to $147b in 2023 as investors are wary of the slowing economic growth in the region, high-interest rates, and volatile public stock markets.