M&A deal values hit a record $46b in November

The $16.1b acquisition of Global Logistic Properties led the growth.

The value of Singapore mergers and acquisitions (M&A) deals rose sharply to $46b across 418 deals in November, the highest activity since the global financial crisis, Dealogic Research revealed.

According to its November data, the value was boosted by the $16.1b acquisition of Global Logistic Properties Ltd. (GLP).

As a result, deal volume jumped 45% over the previous YTD record set in 2012, with $31.8b across 328 deals.

"An area that has seen particularly strong growth in Singapore is funding for startups," said Dealogic regional research manager Andrew Philbey.

Startup investments set a new volume record with $4.9b across 132 deals, compared to only $1.6b across 105 deals last year.

"The startup spike starting in 2015 was largely driven by low-interest rates and investments from overseas," Philbey added.

About 77.3% of funding volume was boosted by foreign investors, as they seek inorganic growth outside of typical investments in China and the US.

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Strong growth for funding rounds will likely continue thanks to recent regulatory changes set out by the Monetary Authority of Singapore (MAS).

A new regime, known as VCFM, allows venture capital (VC) funds to support early stage businesses and startups far more easily by excluding BC managers from the capital requirements and conduct rules that apply to managers of other funds.

VCFM also exempts VCs from the requirement for directors to have over five years' experience in fund management. In effect since 20 October 2017, the regime aims to attract even more investors to Singapore in order to support its startup and growth capital organisations.