Hogan Lovells' Boon On Iran War Impact On Private Equity

Hogan Lovells’ APAC private equity head Siew Kam Boon warned that escalating Middle East tensions—particularly involving Iran—are disrupting global deal-making by increasing geopolitical uncertainty and investor caution. Private equity firms face delayed transactions as heightened conflict risks prompt stricter due diligence, longer approvals, and reduced appetite for cross-border investments in volatile regions. Energy and logistics sectors are most exposed, with supply chain disruptions and oil price volatility forcing fund managers to reassess valuations and exit strategies. Boon noted Asian markets may see relative resilience due to diversified supply chains, but secondary effects like inflation and financing costs could still dampen regional activity. She advised firms to prioritize portfolio resilience, stress-test assets against prolonged conflict scenarios, and explore opportunistic distressed-asset deals amid market turbulence.