Venture capital exit markets globally have become more sophisticated and multi-faceted, making trade sales, PE/secondary fund exits, next-round funding sales, and strategic sales to larger global VC firms just as compelling as the traditional IPO route. In regions like Southeast Asia and Australia, these alternative exits are not just viable—they’re often optimal for realizing value and generating timely distributions for investors.
VC exit conditions across Southeast Asia and Australia are improving from a low base but remain M&A-led and selective. PitchBook notes that in Australia & New Zealand, acquisitions dominated VC exits with just one public listing in Q1 and only ~40 exits in 2023—a level still well below pre-2021 run-rates. In Southeast Asia, cash returns have been scarce and heavily concentrated: since 2015, VC-backed exits total ~US$70B, with nearly half of value coming from just four outsized transactions; 2023 saw only US$1.1B in VC exit value across the region.
The practical takeaway for founders and GPs: today’s exit market rewards targeted trade sales, carve-outs, and structured processes not broad auction runs.
LPs are signaling a clear preference for realised DPI over paper marks, and leading secondaries managers are leaning in. What does that mean for SEA & Australia in 2025? Expect M&A to remain the dominant exit route, supported by GP-led/tender solutions around breakout assets that need more time to compound. In ANZ, software and consumer-internet remain the most tradable profiles; in SEA, cross-border strategics (and PE buy-ins) are the likeliest acquirers when scale, unit economics, and governance align. For GPs raising the next fund, the playbook is clear: start dual-tracking earlier, cultivate the most probable buyers by sub-sector, and be ready with secondary-driven liquidity to convert TVPI into DPI. In a market still short on broad IPO windows, pragmatic M&A plus structured liquidity is the most reliable path to distributions in Southeast Asia and Australia today.