Analysis: Iran war could exacerbate the worst fundraising crisis in a decade for Asia's private equity sector

According to TechFlow news on March 27, CNBC reported that several industry insiders stated that the turmoil in Iran, which is sweeping global markets, has introduced new uncertainties that could weaken the investment enthusiasm for Asian private equity, which has just begun to recover. Andrew Thompson, head of asset management and private equity for KPMG Asia Pacific, said, “What we are seeing now is quite similar to the tariff situation at the beginning of last year—people will pause, slow down, and choose to wait—to avoid being affected by any sudden shocks.” In the context of increasing uncertainty, investment funds in the Middle East (a major source of funds in the global private equity sector) may also temporarily slow down their foreign investment pace, and there will not be large-scale overseas investments in the short term, at least. Thompson stated, “Now is not the time for fundraising assessments. They need to address more issues now.” According to a report released by Bain & Company this week, the funds raised by private equity firms focused on the Asian market last year fell to nearly the lowest level in a decade, reaching only $58 billion, marking the fourth consecutive year of fund contraction. (Jinshi Data)