MCM Partners, a Hong Kong-based merchant banking firm, projects a significant turnaround for private equity deals in 2024, with Sri Lanka expecting transactions totaling up to USD 250 million.
Jahnavi Bhagwati, Managing Director of MCM Partners, discussed this trend with Bloomberg Markets Asia on Monday (March 25), shedding light on the factors behind the anticipated surge in private equity activity this year, contrasting with the sluggish performance observed in 2023.
Bhagwati attributed the renewed optimism in private equity deals to recent developments, notably the Bank of Japan’s decision to raise interest rates in March, marking the end of the country’s era of negative interest rates. This significant shift in monetary policy is expected to create opportunities for investment in countries like India and Sri Lanka, both considered turnaround stories in the region.
She highlighted the positive impact of curbing inflation on stock markets in the region, noting that increased investment activity is anticipated following expected rate cuts.
Acknowledging the challenges faced in the private market space in 2023, Bhagwati emphasized the current resurgence in investor interest and opportunities for growth. She particularly mentioned Sri Lanka’s divestment of significant assets, attracting institutional players and investors keen on capitalizing on the country’s potential.
Regarding the scale of these equity deals, Bhagwati noted that Sri Lanka anticipates deals averaging around USD 250 million, while Bangladesh eyes a potential deal worth USD 1 billion. In India, deal sizes vary from USD 10 million to USD 20 million and up to half a billion.
The remarks underscore the growing optimism surrounding private equity investments in the region and highlight Sri Lanka’s emergence as a promising destination for substantial deals in 2024. Source – adaderana.lk
