Analysis: Iran Conflict Could Exacerbate Asia's Private Equity Sector's Most Severe Fundraising Drought in a Decade

BlockBeats News, March 27th, according to CNBC, several industry insiders said that the Iran-related global market turmoil has introduced a new element of uncertainty that could dampen the nascent enthusiasm for Asian private equity investment. Andrew Thompson, head of asset management and private equity business 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." Against the backdrop of escalating uncertainty, investment funds in the Middle East (a key source of capital for the global private equity industry) may also temporarily slow their pace of outbound investment and refrain from large-scale overseas investments in the short term.

Thompson said: "Now is not the time for fundraising due diligence. They need to address more issues now." According to a report released by Bain & Company this week, funds raised by private equity firms focused on the Asian market last year fell to the lowest level in nearly a decade, reaching only $58 billion, marking the fourth consecutive year of fund contraction. (Jinshi)