10 December 2021

Paul DiGiacomo talks to AVCJ on sponsor-to-sponsor exits in Asia

Sponsor-to-sponsor exits are set to reach a record high in Asia this year. Sponsors in Asia are driven by the need to deploy capital from increasingly larger funds and comfort with higher valuations for high-quality businesses. As BDA’s Paul DiGiacomo shares with Asian Venture Capital Journal (AVCJ), “People were – and still are – finding ways to do deals. The US market has been on fire for two years, but relative to Asia, it is very domestic and hasn’t been hampered by border closures. The rebound in M&A volumes and exits in Asia is even more impressive, given the added layer of challenges to what the US and Europe have seen.”

At the same time, investors are becoming pickier. “We see people trying to preempt deals. Investors are pickier about the situations they dig into – they don’t want to be one of 10 chasing a business, so they run hard on the ones they really want. Deploying a $5-10 billion fund is challenging. If the recipe for not missing out on something is stretching the valuation and offering deal certainty, that might be reasonable,” added Paul DiGiacomo. 

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