Thailand’s private equity (PE) market is expected to recover gradually in 2026, even as investors remain highly selective amid ongoing global economic uncertainty and geopolitical tensions. While significant levels of capital remain available across the region, investment decisions are increasingly being driven by asset quality, operational value creation and long-term growth potential.
Mr. Khongkiat Jatupornpakdee, Mergers & Acquisitions Partner at Deloitte Thailand, said the country’s private equity market is entering a period of “cautious recovery” rather than a broad-based rebound. Although global private equity funds continue to hold substantial amounts of undeployed capital, or dry powder, investors are becoming increasingly disciplined in their deal selection, focusing on businesses with strong fundamentals, resilient cash flows and clear value creation opportunities.
“Investors are no longer relying primarily on favourable market conditions to drive returns,” he said. “Instead, they are placing greater emphasis on operational improvements, cost optimisation and exit readiness to create sustainable value.”
According to Deloitte’s Asia Pacific Private Equity 2026 Almanac – Southeast Asia Edition, 2025 marked a year of recalibration for Southeast Asia’s private equity market. Although deal volumes declined, investors continued deploying capital into high-quality assets with stronger downside protection and clearer operational upside. As a result, quality rather than volume became the defining characteristic of the market, while mid-market buyouts remained the primary driver of deal activity across the region.
In Thailand, improving macroeconomic stability, government investment promotion policies and strategic initiatives such as the Eastern Economic Corridor (EEC) have supported a gradual recovery in investment activity. However, modest economic growth, elevated household debt and tighter credit conditions continue to constrain larger leveraged transactions.
Digital infrastructure has emerged as one of the country’s most attractive investment themes, particularly data centres, driven by the rapid expansion of artificial intelligence (AI), cloud computing and data-intensive applications.
“Thailand is strengthening its position as a regional digital hub,” Mr. Khongkiat stressed. “As demand for AI and digital infrastructure continues to accelerate, private capital is increasingly targeting sectors that offer long-term structural growth.”
Beyond digital infrastructure, investors continue to show strong interest in healthcare, consumer goods, food processing, logistics, renewable energy and advanced manufacturing. These sectors are supported by favourable demographic trends, resilient domestic demand and Thailand’s strategic role within regional supply chains.
Nevertheless, external risks remain a key concern for investors. Ongoing geopolitical tensions, particularly in the Middle East, could affect Thailand through higher energy prices, exchange-rate volatility, financing costs and broader shifts in investor sentiment. As a country that remains heavily dependent on imported energy, Thailand is especially vulnerable to sustained increases in oil prices, which could pressure operating costs and profit margins across several industries.
“Periods of heightened uncertainty make investors even more selective,” Mr. Khongkiat said. “They are increasingly looking for businesses with recurring revenue, strong pricing power, resilient margins and the ability to manage volatile input costs.”
The exit environment also remains one of the biggest challenges facing Thailand’s private equity market. With the domestic IPO market yet to fully recover, trade sales and secondary buyouts continue to represent the primary exit routes for financial sponsors. In response, many private equity firms are extending holding periods while focusing on operational improvements within their portfolio companies to enhance value and prepare assets for future exits when market conditions improve.
Compared with other Southeast Asian markets, Singapore continues to lead the region’s private equity landscape, supported by its mature capital markets, investment-friendly regulatory framework and well-developed financial ecosystem. Indonesia benefits from its large domestic market, Vietnam continues to attract investors through manufacturing expansion and supply chain diversification, while Malaysia has gained momentum through ongoing structural reforms.
Despite operating in a smaller market, Deloitte believes Thailand retains significant competitive advantages in sectors such as healthcare, food and agribusiness, logistics and consumer-related industries.
Mr. Khongkiat said Thailand could further strengthen its position by improving exit mechanisms, enhancing regulatory clarity, developing its capital markets and promoting stronger corporate governance among private companies.
“Thailand has the potential to attract significantly more private equity investment,” he said. “Unlocking that potential will require continued macroeconomic stability, consistent government policy implementation and further development of the country’s capital markets. Together, these factors will create a more attractive investment environment and support sustainable long-term returns.”
As regional and global conditions gradually improve, Deloitte believes Thailand is well positioned to capture greater private equity investment, provided structural reforms continue and investor confidence strengthens.
