Zhongtong (Hong Kong) accounting firm's latest publication "Asia Private Equity Investment Outlook 2024" points out that investors are cautiously optimistic about the prospects of the Asian private equity industry in 2024. Despite facing challenges such as high interest rates, persistent inflation pressure, escalating geopolitical tensions, and global economic uncertainties, private equity markets are expected to gradually recover as the rise of artificial intelligence and the clearance of previously accumulated transactions continue. Investors are attracted to India's vibrant technology industry, young population, and rapidly growing consumer market. Multinational private equity investment companies are expanding their teams in India in order to tap into this vast emerging market. Zhongtong also notes that the global monetary tightening cycle is expected to come to an end soon, which will boost the debt market and alleviate borrowing costs. However, private equity industry may still face difficulties in exiting mature investments in the current macroeconomic adversity, so the prices of acquiring majority stakes in companies by private equity funds may continue to adjust. Tang Fei, Managing Partner of Zhongtong's China Forensic Investigation Services, stated that the valuation gap between buyers and sellers is expected to narrow further in 2024, which will facilitate more active trading. One common strategy used by private equity investment companies to narrow the valuation gap is the Earn-out agreement, where the seller will only receive the corresponding price from the buyer after the acquired company achieves a certain future profit target, to ensure the seller's minimum selling price. Add-on acquisition is another increasingly common transaction structure aimed at compensating for the deficiencies in talent and technology in larger companies within the investment portfolio, and promoting synergy between newly acquired companies and existing invested companies, thereby further creating value in a challenging financing environment. Tang Fei also mentioned that investors are attracted to India's vibrant technology industry, young population, and rapidly growing consumer market. Multinational private equity investment companies are expanding their teams in India in order to tap into this vast emerging market. Other Southeast Asian countries, such as Vietnam and Indonesia, with relatively lower production costs and improving labor productivity, are becoming increasingly attractive for investors seeking opportunities outside of China. Additionally, due to investors wanting to avoid the rising geopolitical risks, Singapore is becoming increasingly favored as a hub for private equity investment. Situated in the center of Southeast Asia, Singapore is strategically located and is an ideal gateway for capturing growth opportunities in the region.