PRIVATE equity activity in the Philippines slowed last year, but the country is expected to continue attracting targeted investor interest in 2026, according to Deloitte’s 2026 Southeast Asia Private Equity Almanac.
“Although deal volumes were lower relative to larger ASEAN (Association of Southeast Asian Nations) markets, the Philippines continued to offer targeted opportunities aligned with PE (private equity)’s selective deployment approach,” Deloitte said in its report.
“Looking ahead, initiatives such as the push for public-private partnerships (PPP) are expected to strengthen the investment climate in 2026 and support a deeper pipeline of private equity opportunities,” it added.
Across Southeast Asia (SEA), dealmaking weakened in 2025 amid continued global uncertainty, with investors focusing on transactions that offered clearer value visibility and stronger downside protection.
“Many investors and dealmakers entered the year with cautious optimism for mergers and acquisitions, hoping that inflationary pressures would continue to ease and that interest rates might stabilize or even begin to decline,” Deloitte said.
The report noted that the softer activity in both deal count and value did not indicate reduced capital availability, but rather a recalibration of risk appetite.
Deloitte’s data showed that Southeast Asia logged 56 buyout deals in 2025 with a total disclosed value of $6.4 billion, a 32% decline from $9.4 billion across 74 deals in 2024.
Despite the slowdown, sector interest remained concentrated in technology, media and telecommunications (TMT) and healthcare.
TMT led activity, accounting for 41% of buyout deal value and 30% of deal count, followed by healthcare with 20% of deal count and 14% of value. Consumer sectors accounted for 16% of deal count and $0.3 billion in value.
Singapore continued to dominate regional private equity activity, contributing 54% of buyout deal count and roughly 75% of total deal value. Outside Singapore, deal flow remained subdued but steady, supported by selective consolidation opportunities and sector-specific investments.
In the Philippines, four buyout deals were recorded in 2025, down from nine in 2024.
Activity was largely concentrated in digital infrastructure, particularly investments tied to connectivity, cloud readiness, and AI-enabled platforms.
“Demand for data connectivity, cloud- and AI-ready infrastructure, and infra-adjacent digital platforms underpinned this focus,” the report said.
“Beyond TMT, deal flow was mainly concentrated in consumer services, healthcare access models, and logistics-linked assets,” it added.
Transactions in 2025 were predominantly in the mid-market segment, with activity centered on platform investments and assets offering recurring demand and scalability.
Corporate carve-outs also contributed to deal flow, alongside opportunities to enhance operations and governance in selected assets.
Even as overall deal volumes remained lower than in larger ASEAN markets, the Philippines is expected to continue drawing steady interest from select private equity investors.
Deloitte said the Southeast Asian private equity market enters 2026 with strong capital availability and continued investor interest, even as exit activity remains subdued.
“Dry powder remains elevated and private equity firms continue to demonstrate strong intent to deploy capital. At the same time, a backlog of exits has accumulated following the slowdown in realizations in recent years, suggesting a potential pickup in exit activity as sponsors look to return capital to investors,” it said.
Market conditions continue to be shaped by macroeconomic uncertainty, including geopolitical tensions and tariff-related risks. Still, private equity activity has remained broadly resilient, supported by long-term investment commitments and sustained interest in the region’s growth sectors.
Looking ahead, investment is expected to remain focused on mid-market buyouts and platform-building strategies, where value creation levers are clearer and operational control is stronger.
“Overall, 2026 is likely to reward sponsors that translate 2025’s selectivity into execution: building scalable platforms, tightening operating cadence, and positioning assets for multiple exit routes,” Deloitte said. — Alexandria Grace C. Magno
