Private equity (PE) investment in Southeast Asia declined sharply in the second quarter of 2026, as investors remained selective amid geopolitical uncertainty and a subdued dealmaking environment, according to EY-Parthenon. The region recorded 10 private equity deals worth $935.5 million during the quarter, compared with 19 deals totaling $9.2 billion in the first quarter, EY-Parthenon’s Southeast Asia Private Equity Pulse for Q2 2026 report showed. Despite weaker investment activity, Southeast Asia recorded its strongest exit conditions since the first quarter of 2022. Blackstone’s $900 million exit from Interplex Datacom ranked second, followed by Dymon Asia Private Equity’s $136.8 million exit from industrial company Newark. EY-Parthenon ASEAN Private Equity Leader Luke Pais said stronger exit activity was an encouraging sign for capital recycling and could support a more constructive outlook for private equity sponsors in the coming quarters.